NASDAQ futures set to gap higher into Tuesday after an overnight session featuring normal range and volume. Price worked higher overnight, trading up to and sustaining new highs as we approach cash open. At 8:30am Trade Balance data was slightly worse than expected.
Also on the economic docket today we have JOLTS Job Openings at 10am, a 4-week and 34-day T-bill auction at 11:30am, $24 billions dollar’s worth of 3-year Notes being auctioned at 1pm, and Consumer Credit at 3pm.
Yesterday we printed a normal variation up. After starting the week gap down, buyers quickly showed up and bid the market higher. They continued their campaign late in the afternoon to close near session high.
Heading into today my primary expectation is for a squeeze higher early on, up to 5182. Look for sellers up here and two way trade to ensue.
Hypo 2 stronger squeeze up to 5191.25, then seller show up and begin reversing the move.
Hypo 3 strong buyers sustain trade above 5191.25 setting the stage for a real rally.
Hypo 4 sellers work into the overnight inventory and close the gap down to 5158 then set their sights on overnight low 5154.25. Look for buyers down at 5150.50 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
