NASDAQ futures are coming into Tuesday flat after an overnight session featuring normal range and volume. Price held Monday range on balanced trade. At 8:30am GDP data were released, better-than-expected across the board, knocking the market about 4 points lower.
Also on the economic docket today we have Consumer Confidence at 10am and a 4-week T-bill auction at 11:30am.
Yesterday we printed a normal variation up. The range extension up was met by strong responsive selling; the sellers were strong enough to print an excess high in the morning and defend their territory again in the afternoon (rather aggressively, like emotional ape). After giving back most of the days’ progress, the NASDAQ formed a little ramp higher into the close.
Heading into today my primary expectation is for buyers to work up through overnight high 4872.25 and push into the emotional seller by testing above Monday high 4879.75 and targeting the open gap at 4888 before two way trade ensues.
Hypo 2 sellers work down through overnight low 4856.25 and target 4839.50 before two way trade ensues.
Hypo 3 strong sellers trigger a liquidation down to 4811.50.
Levels:
Volume profiles, gaps, and measured moves:
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