NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher a touch, well into the selling rotation we saw late Monday morning.
The economic calendar is light today. Only a 4-week T-bill auction at 11:30am to concern yourself with.
Yesterday we printed a normal variation down. The week began gap up and after a brief morning push higher, responsive sellers stepped in and worked up range extension down, filled the overnight gap, and ultimately tagged the naked VPOC below before two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5979.75. From here we continue lower, down through overnight low 5978.75. Look for buyers down at 5974.25 and two way trade to ensue.
Hypo 2 stronger sellers force a liquidation down through Monday low 5958.50. Look for buyers down at 5945.50 and two way trade to ensue.
Hypo 3 buyers press up through overnight high 5995.50 negating the expectation for selling. Look for a move up to 6003 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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