NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme volume on normal range. Price worked down through the Thursday low overnight before settling into balance. At 8:30am Consumer Price Index data came out slightly worse than expected.
There are no other major economic events scheduled for today.
Yesterday we printed a trend down. Price began the day gap down and we pushed lower off the open, gap-and-go. Then we continued lower, pushing down into the 7/13 range before two way trade ensued.
Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 5789. From here we continue lower, down through overnight low 5761. Look for buyers down at 5753.75 and two way trade to ensue.
Hypo 2 buyers trade up to 5813.25 before we reverse and turn lower. We take out Thursday low 5783.25 briefly before two way trade ensue.
Hypo 3 strong buyers work up to 5827 then sustain trade in this range, triggering a rally up to 5854.75 before two way trade ensues.
Volume profiles, gaps, and measured moves: