NASDAQ futures are coming into the session gap up after an overnight session featuring normal range and volume. Price pushed lower, extending the weekly low, briefly before buyers stepped in and the market went back into balance.
On the economic calendar today we have a 4-week T-bill auction at 11:30am, 3-year Note auction at 1pm, and a Monthly Budget Statement at 2pm.
Yesterday we printed a normal variation down. After coming into the week gap up, an early rally was faded and price went into chop before ultimately fading lower to end the day on session low.
Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 4451.25. From here look for a test below overnight low 4440.75 before responsive buyers step in and two way trade ensues.
Hypo 2 sellers close overnight gap down to 4451.25 then take out overnight low 4440.75. Price continues lower and takes out 4428 trigger a fast liquidation trade down to 4402.50 before two way trade ensues.
Hypo 3 buyers defend ahead of a gap fill and work higher to take out overnight high 4472.75. Look for responsive sellers ahead of the 4500 century mark and two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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