NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price poked higher, briefly, overnight before beginning to work lower in a balanced, methodical manner. As we approach cash open, price appears to be in balance and is trading just below the Monday midpoint. At 8:30am the Employment Cost Index data was below expectations.
Also on the economic docket today we have the Case-Shiller Comopsite-20 at 9am, Consumer Confidence at 10am, $20B worth of 52-week T-bills being auctioned by the US Treasury at 11:30am, and a 4-week T-bill auction at 11:30am.
Apple is set to report earnings after-market-close, and is likely to jostle NASDAQ futures prices.
Don’t forget we have an FOMC rate decision lingering on the horizon, set for release Wednesday afternoon.
Yesterday we printed a rare normal day. Sellers were active and aggressive for the first hour of trade, driving price lower. However, their campaign ended just as soon as it began, and the higher time frame stepped aside which led to prices slowly drifting higher. It is worth noting, however, that there were active and aggressive sellers early on, so aggressive, we printed an abnormally wide initial balance.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5123.75. Price continues higher, up through overnight high 5126.75. Look for sellers to defend their newly claimed territory, ahead of 5130 and two way trade to ensue.
Hypo 2 sellers press off the open, down through overnight low 5106.75 and continue lower to probe the Monday low 5094.50. Look for buyers just below at 5092.25 and two way trade to ensue.
Hypo 3 strong buyers sustain trade above 5130 to trigger a pole climb up to 5148.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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