NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, right up to the 10/25 session low (current swing high date) before finding a responsive seller.
The economic calendar is light today. At 11:30am we have a 4-week T-bill auction and at 1pm a 5-year Note auction.
Yesterday we printed a double distribution trend up. After a gap up to start the week, buyers drove the market higher. A responsive seller showed up right around where the strong sellers existed back on 11/10, but said seller was ultimately overrun and squeezed into the end of the day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and test the Monday high 4862. Buyers defend up here and we work higher to take out overnight high 4881.50 and target 4884.25 before two way trade ensues.
Hypo 2 sellers work a gap fill down to 4853.25 then take out overnight low 4853. Look for buyers down at 4850 and two way trade to ensue.
Hypo 3 stronger selling pushes the market back down to 4833 before two way trade ensues.
Hypo 4 trend up, take out overnight high 4881.50 and target the open gap at 4888. Consolidate above these prices before a second leg up to 4917.75.
Levels:
Volume profiles, gaps, and measured moves:
If you sort of flip primary hypo on its head and traded it, it was $$$ 😉
+1