NASDAQ futures are coming into Tuesday pro gap down after an extreme range print overnight on elevated volume. Price managed to push down through the Monday low and test the conviction drive that set up last Friday morning. The most prominent feature of the globex session is a 35 point down rotation that occurred around 6am this morning.
There are no economic events to be aware of today.
Yesterday we printed a normal variation down with a profile that suggests long liquidation. After going range extension down, sellers struggled to initiate further downside. Instead the profile skewed into a lowercase letter-b shape before the market had a small rally into the close.
Heading into today my primary expectation is for buyers to push into the overnight inventory and work the half gap fill up to 4673.75. I will look for responsive sellers here who try for overnight low 4645.50 but fail. Instead buyers push a secondary leg up through 4677.25 to target 4685.50 before two way trade ensues.
Hypo 2 buyers struggle with the half gap up to 4673.75, stalling before, and sellers go take out overnight low 4645.50. This triggers liquidation down the single prints, all the way to 4603.50 before two way trade ensues.
Hypo 3 gap and go lower. No time is spent pushing into overnight inventory. We liquidate down to 4603.50 then target the 4600 century mark. Some back and forth here before w continue down to target 4587.
Hypo 4 buyers push a full gap fill up to 4701.75, negating the entire globex session before taking out overnight high 4705.25. Look for a test up through Friday high 4610 before two way trade ensues.
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