NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, trading up near last Wednesday’s high before settling into balance. As we approach cash open, price is hovering above Monday’s range.
On the economic calendar today we have ISM employment/manufacturing at 10am.
Yesterday we printed a double distribution trend up. The day began with a gap up, and after two-way auction buyers stepped in and drove price higher. The auction stalled out ahead of last Friday’s high before rotating back to the daily midpoint. Price then rallied back near the high in a late session ramp.
Heading into today my primary expectation is for sellers to press into the overnight inventory and reclaim the Monday high 7788.75. From here we continue lower, closing the overnight gap 7784.50. Look for buyers down at 7762.75 and two way trade to ensue.
Hypo 2 buyers gap-and-go higher, trading up through overnight high 7826.75. Look for sellers up at 7868 and two way trade to ensue.
Hypo 3 stronger buyers rally up to 7900 before two way trade ensues.
Volume profiles, gaps, and measured moves: