Nasdaq futures are indicate slightly lower prices heading into Tuesday’s open. The overnight session featured and early push above Monday’s high print 4567.75 and up to the value area high established 8/10 before responsive sellers arrived and rolled the session over. The rest of the evening was spent working lower.
At 8:30am Housing Starts and Building Permits were released. The initial reaction to the data is buying. Investors will starting thinking about tomorrow afternoon’s FOMC minutes soon and this may cause us to enter a holding pattern.
Yesterday we printed what resembles a triple distribution trend day. The directional price action was not vigorous enough to classify the day as a bona fide trend day, but still a high conviction day. Buyers managed to close the open gap from 8/10 at the end of the session. Expectation was to see the session high exceeded, if only by a tick, today. The question now is whether the market profile trend day rule was satisfied overnight, of in instead we will revisit the high again soon.
Aside from last Tuesday, Tuesday has been a quiet day in recent history. Therefore, heading into today’s session, my primary expectation is for a slow session. Look for buyers to push into the overnight inventory and work higher. I am bearish however, thus I expect buyers to struggle to fill the overnight gap and price to roll over. There is a major value area below that I expect to behave like a magnet. Look for sellers to take out the overnight low then responsive buying from 4544.25 to 4535.
Hypo 2 buyers close the overnight gap 4564.75 and set their targets on overnight high 4573.50. Look for a continuation move up to 4592.75 then responsive sellers step in.
Hypo 3, liquidation takes hold and sellers push down to the VPOC at 4517.
Levels:
primary hypo game on point today