NASDAQ futures are coming into Tuesday gap down after an overnight session featuring extreme range and volume. Price worked sideways overnight, sustaining trade for most of Globex above the Monday midpoint. As we approach cash open price is hovering just above the midpoint.
On the economic agenda today we have an 8- and 52-week T-bill auction at 11:30am and a 10-year Note auction at 1pm. Also, the USA midterm elections are today, the results of these elections are likely to take shape later this evening.
Yesterday we printed a normal day, which is anything but normal. They only occur about 5% of the time on the NASDAQ. The day began with a gap down and drive lower, leaving the last Friday gap behind at 6979. The drive lower poked down into the open air left behind last Wednesday before discovering a responsive bid late in the initial balance. Then we spent the rest of the session chopping along the lower quadrant before ramping higher late in the session. Overall the action was contained inside of the first hour of trade.
Normal day.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6947. From here we continue higher, up through overnight high 6969.50 setting up a move to target the open gap at 6979. Look for sellers up at 6988.75 and two way trade to ensue.
Hypo 2 sellers step in right at Monday close 6947 and work us lower, down through overnight low 6906.75. Look for buyers down at the 6900 century mark and two way trade to ensue.
Hypo 3 stronger sellers trade us down through Monday low 6865 setting my a move to target 6832.25 before two way trade ensues.
Levels:
Volume profile, gaps, and measured moves:
