NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, up beyond Monday’s high and the market is sustaining the gains heading into cash open.
The economic calendar is light today with only a 4-week T-bill auction at 11:30am and a 30-year Bond auction at 1pm. Investors, however, patiently await the Fed Rate Decision due out tomorrow afternoon.
Yesterday we printed a normal variation down. After coming into the week gap down an early attempt higher was rejected by sellers. The defended Friday’s low sending the market into a calm decent. After going range extension down, the market checked back to its daily midpoint then formed another rotation lower. This one revealed a responsive bid which pressed prices back higher above the mid by the close.
Heading into today my primary expectation is for an early short squeeze, up to the weekly gap at 4892.25. Look for sellers up at 4895 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 4865.75. Sellers take out overnight low 4859.50 and find buyers just below at 4858.50 before two way trade ensues.
Hypo 3 strong buyers work up to the 4900 century mark, consolidate, then continue up to 4908.50.
Hypo 4 strong sellers work down to 4845 before balance ensues.
Levels:
Volume profiles, gaps, and measured moves:
