NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight trading well up into the upper quadrant of the trend down that occurred March 13th. As we approach cash open prices are hovering near Globex high.
On the economic calendar today we have ISM non-manufacturing/services composite followed by a 4-week T-bill auction at 11:30am.
Yesterday we printed a double distribution trend up. The day began with a gap up beyond last Friday’s range and a drive higher. This set the tone, and after some morning chop buyers extended their campaign higher before settling into a tight balance.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7148.25. Look for buyers down at 7141.75 and two way trade to ensue.
Hypo 2 buyers step in ahead of Monday session high 7151.50 setting up a move to take out overnight high 7174.50. Look for sellers up at 7181.75 and two way trade to ensue.
Hypo 3 stronger buyers sustain trade above 7187.25 setting up a move to target 7200.
Levels:
Volume profiles, gaps, and measured moves:
