Nasdaq futures are quite a bit higher overnight, far outpacing the performance of all other major indices. As of this writing, we are set to open about 50-to-60 points higher on the /NQ_F futures. Pre market we had Durable Goods Orders and Jobless Claims which brought more buyers in, however most of the overnight strength is being attributed to earnings.
We are now above the midpoint of my proposed bracket range on the NASDAQ meaning the risk of being long is greater than being short. At the same time, our intermediate auction continues higher.
These big overnight gaps can often create a frustrating day trade environment. Risk is elevated because the market is clearly out of balance. Often it is best to do very little, instead managing existing positions and carefully looking for rotation opportunities into stocks that have not run.
I highlight my primary upside target for the Nasdaq on the following intermediate term volume composite:
I am using a 24-hour market profile this morning since we had so much overnight action. I want to see the footprint this action left and look for high opportunity levels as well as envision how today’s profile may take shape. I have highlighted these observations below: