Nasdaq futures traded quietly for most of the night before sellers came in around 8:30am. Since then, it appears the sellers have taken control on the very short term in an otherwise balanced overnight session. There are some retail store numbers out premarket including the Redbook, and we have several treasury auctions in the afternoon. The economic calendar is otherwise quiet for the session.
Buyers pressed the envelope of extreme on the intermediate timframe yesterday after starting the day with a short squeeze. The market profile print into the early afternoon resembled a P-shape, which signals a dynamic short squeeze which failed to attract fresh initiating buyers. However, buyers were enticed by the higher prices eventually and an afternoon rally took shape. You can see we are trading above a composite volume pocket below. This may be traversed several times today and during the rest of the week:
On The short term, buyer are in control but we are set to gap lower a touch in a thin volume zone. One must be careful in this region as price can move very fast. I suspect we retest yesterday’s VPOC if sellers continue their early campaign, and we still have a large gap left below on the weekly chart. I have highlighted a few short term observations on the following market profile chart:
