NASDAQ futures are coming into Tuesday gap down after an overnight session featuring elevated range and volume. Price worked lower overnight, briefly probing below the Monday cash low before settling into balance.
The economic calendar is light today. We have a 4-week T-bill auction at 11:30am then a 3-year Note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap up beyond the Friday range and morning drive higher from buyers. There was a brief range extension but not by much, the rest of the day was spent chopping and in balance.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6824.50. From here we continue higher, up through overnight high 6837.50. Look for sellers up at 6856.50 and two way trade to ensue.
Hypo 2 sellers gap-and-go lower, down through overnight low 6791 setting up a move to target 6766.75 before two way trade ensues.
Hypo 3 stronger sellers press down into last Friday’s trend up, probing down to the naked VPOC at 6750 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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