NASDAQ futures are set to come into Tuesday gap up after an overnight session featuring extreme [3rd sigma] range on normal volume. Buyers saw price thrust higher last night then come into balance below Monday session high. At 8:30am USA GDP came out slightly better than expected.
USA GDP (QoQ) for Q1 1.10% vs 1.00% Est; Prior 0.80% $SPY $QQQ $IWM $DIA
— Raul (@IndexModel) June 28, 2016
Also on the economic docket today we have the Case-Shiller Home Price Index at 9am and Consumer Confidence at 10am.
Yesterday we printed a normal variation down. Strong selling off the open pushed price down through the week’s ATR measured move band and continued cascading lower, down to an micro-composite volume point-of-control [MCVPOC] printed back in early February at 4171 [see yesterday’s hypo 3]. From here two-way trade ensued.
Heading into today my primary expectation is for a short squeeze higher. Look for a test above Monday session high 4243.75. Look for responsive sellers up at 4248 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and test down to 4200 before responsive buyers step in, work us up through overnight high 4234.25. Look for sellers up at 4241.75 and two way trade to ensue.
Hypo 3 strong sellers work down through 4200 and work a full gap fill down to 4178.75. Look for responsive buyers down at 4715.50 and two way trade to ensue.
Hypo 4 full-on rally up through 4248 to target a weekly gap fill up to 4268.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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