Nasdaq futures are lower overnight, currently trade is down nearly 20 handles off Thursday’s close. Selling activity picked up early this morning around 6:30am. We are currently trading right around yesterday’s value area low meaning we are set to open inside range, potentially inside balance which suggests the market is coming into balance.
The weekly candle will give us a ton of information this afternoon as we get to see whether price will struggle at the midpoint of my proposed bracket range or if we have enough power to continue higher and set the other extreme.
The intermediate term auction is buyer controlled and working on continuing higher after printing a higher low yesterday. I have highlighted the intermediate term on the following volume profile composite:
The short term auction is a rare spectacle of balance. We printed a neutral print with price never exceeding the initial balance. This happens less than 3% of the time over the last 3 years of data. It shows indecision on the part of buyers and sellers. We can see a volume skew to the upside plus a close near the value area high which suggested just a slight bit of buyer conviction. However, the next accepted move away from here will be the important one. For now, the short term is in balance: