NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range on elevated volume. Price was balanced overnight, trading inside Monday’s lower quad for the entire globex session. As we approach cash open, price is hovering in said lower quad.
There are no economic events today.
Yesterday we printed a double distribution trend down. The day began with a pro gap up to levels unseen since May 3rd. After a brief open two-way auction sellers stepped in and began working price lower. There was some chop and balance before New York lunch before sellers worked a second rotation lower. Buyers stepped in late in the session, near last week’s high print, and we ramped nearly back to the daily midpoint by end of day.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7791. From here we continue higher, up through overnight high 7799.50. Look for sellers up at 7810 and two way trade to ensue.
Hypo 2 stronger buyers work up through Monday high 7849.75 setting up a move to target 7887.50 before two way trade ensues.
Hypo 3 sellers press down through overnight low 7763 setting up a move to target 7737.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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