NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked sideways most of the night in a balanced session before making a small push lower heading into cash open. At 5am USA’s best Federal Reserve Chairman Janet Yellen spoke as part of a panel over at the European Central Bank.
The only other item on today’s economic docket is a 4-week T-bill auction at 11:30am.
Yesterday we printed a normal variation up. The day began gap down inside of the Friday range. Buyers immediately stepped in and close the overnight gap. The market then flagged out for much of the day before making a second leg higher. This discovered a responsive sale towards the end of the day.
Heading into today my primary expectation is for sellers to press down to 6289.75 before two way trade ensues.
Hypo 2 buyers work into the overnight inventory and close the gap up to 6312. From here we continue higher, up through overnight high 6318.25. Look for sellers up at 6332.50 and two way trade to ensue.
Hypo 3 stronger sellers trigger a liquidation down to 6253.75 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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