NASDAQ futures are lower heading into Tuesday after an overnight session featuring extreme range on elevated volume. Price spent most of the session working lower but sellers were contained ahead of the Monday low.
On the economic calendar today we have a 4- and 52-week T-Bill auction at 11:30am.
Yesterday we came into the week gap down and after very briefly exceeding overnight low price worked higher to close the overnight gap. From there we continued higher up through overnight high. The afternoon also saw a rally. Yesterday afternoon, just after closing bell price spiked higher on strong earnings from Alphabet. The rip was faded by sellers to form a distinct excess high on the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory but struggle to fill the gap. Instead sellers stall out around 4268. From here we work lower to take out overnight low 4234.25 before two way trade ensues.
Hypo 2 buyers work up though 4268 and sustain trade above it. Look for buyers to target 4277. Buyers struggle to get up through 4282.50 but eventually do a full gap fill up to 4289.50. From here buyers are likely to take out overnight high 4293.25. Look for responsive sellers ahead of yesterday session high 4309.25 and two way trade ensues.
Hypo 3 sellers push off the open and take out overnight low 4234.25. Unable to recapture 4242, the market continues lower to target 4215.50 before two way trade ensues.
Hypo 4 strong buyers drive higher off the open and close the overnight gap up to 4289.50. They take out yesterday high print 4309.25 and we trend higher to target 4330.
Levels:
Given that we’re trading tightly with every up or down tick in CL; does the auction theory & index model account for that as well?
Just wondering
I do not factor oil price action into my analysis of the NASDAQARI
+1