NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme range and volume. Price worked higher mostly overnight after a brief probe down below Monday’s low. As we approach cash open, price is hovering just above the Monday midpoint.
There are no important economic events scheduled today.
Yesterday we printed a normal variation down. The day began with a pro gap down below the Friday range. Buyers attempted back into range early on but were rejected away from it. Sellers then slowly discovered lower prices, eventually tagging 7300 before two way trade ensued. We closed near session low.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7399.75 triggering a move up to 7507.50 before two way trade ensues.
Hypo 2 sellers press into the overnight inventory and trade down to 7332 before two way chop begins. Chop eventually gives way to more selling, down through overnight low 7290. Look for buyers down at 7271.25 and two way trade to ensue.
Hypo 3 stronger buyers trade up to 7609.75 closing the Friday open gap.
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