NASDAQ futures are heading into Tuesday pro gap up after an overnight session featuring extreme range and volume. Price started the globex session working lower and traded back down to value area low before again finding a sharp responsive bid down in the conviction levels printed back on October second. The market then continued higher to take out yesterday’s high and push into the upper quadrant of last Friday before finding sellers.
The economic calendar is spattered with low/medium impact events here in USA, but we also have a 9:15am talk coming from Bank of England’s Mark Carney which may make for a choppy cash open. Also on the docket we have JOLTS Job Openings at 10am, a 4-Week T-Bill Auction at 11:30am, and a 3-year T-Note auction at 1pm.
Yesterday we came into the week gap up and made short work of erasing the gap in downward trade. Price pushed deep into the 10/02 conviction day before finding a strong responsive bid (much like globex this morning). Buyers rushed in once a bid was established and we closed above the daily mid.
Heading into today my primary expectation is for sellers to push into the overnight inventory. Look for a move down to 4278 then responsive buyers (responsive relative to the open, initiative relative to yesterday’s close) who step in and work to take out overnight high 4332.75. Upside target is 4348.75.
Hypo 2 sellers work a full gap fill down to 4272 which sets up a move to test the interesting low volume node at 4257. Look for responsive buyers here who defend and push higher to 4300 before two way trade ensues.
Hypo 3 erase the overnight gap down to 4272 then push back down through value to test VAL 4243. Sellers then target overnight low 4236.50. This sets up a test of Monday low 4208.75. Downside target is 4118.
Levels:
