NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range and volume. Price worked higher overnight, trading up into Monday’s upper quadrant before settling into balance. As we approach cash open price is hovering near Monday’s midpoint.
On the economic calendar today we have the NY Fed’s q2 household credit/debt report at 11am followed by the US Treasury auctioning off 4- and 52-week T-bills at 11:30am.
Yesterday we printed a normal variation down. The day began flat and with buyers driving off the open. The buying stalled out within the first hour of cash trade and we began working lower, eventually pushing range extension down but finding bidders ahead of last Friday’s low.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7416.25 before two way trade ensues.
Hypo 2 stronger sellers continue down through overnight low 7406.25 setting up a move to target 7400.
Hypo 3 buyers step in ahead of 7435 setting up a move to take out overnight high 7465. Look for sellers up at 7481 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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