NASDAQ futures are coming into Thursday, June 1st flat after an overnight session featuring normal range and volume. Price worked sideways, trading inside the Wednesday range for the entire session. At 8:15am ADP Employment change came out way stronger than expected.
USA ADP Employment Change for May 253.0K vs 185.0K Est; Prior 177.0K
The economic is running piping hot.
Also on the economic calendar today we have Initial/Continuing jobless claims at 8:30am. However, investors are more likely to be focused on Friday’s Non-farm payroll data, if they’re focused on any economic data at all.
We also have ISM Manufacturing at 10am, then crude oil inventories at 11am.
Yesterday we printed the dreaded normal day where the first hour of trade is so dynamic that we never exceed it’s range. This happens about 5% of the time. Sellers drove lower off the open, agressively, then backed off as a bid appeared. We spent the rest of the day slowly working higher. The daily midpoint was a wall for several hours—a wall that was ultimately overtaken late in the day by a gregarious buying push.
Heading into today my primary expectation is for seller to work down through overnight low 5797.75 and trade down to 5793.50 before two way trade ensues.
Hypo 2 stronger sellers press down to 5775.75 before two way trade ensues.
Hypo 3 buyers work up through overnight high 5809 and continue making record highs. Look for sellers up at 5837.25.
Volume profiles, gaps, and measured moves: