NASDAQ futures are coming into Tuesday gap down after an overnight session featuring elevated volume on normal range. Price worked lower overnight after briefly exceeding the Monday high. As we approach cash open, price is hovering above Monday’s mid.
On the economic calendar today we have JOLTS jobs openings at 10am, 4- and 8-week T-bill auctions at 11am, and a 3-year note auction at 1pm.
Yesterday we printed a double distribution trend up. The day began with a gap down and drive lower. Said drive lost its steam after closing the 04/04 open gap nearly to the tick. From then onward the market auctioned higher, encountering some sellers at the overnight gap zone before rebuilding strength and making a second, sustained push into closing bell.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7624.25. From here we continue higher, up through overnight high 7633.75. Look for sellers up at 7660 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 7599.25 setting up a move to target 7556 before two way trade ensues.
Hypo 3 stronger buyers trade up to the open gap at 7665.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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