NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme volume on elevated range. Price was balanced overnight, chopping along the highs of Monday and beyond. As we approach cash open, price is hovering near globex high, which is up near last week’s high print from last Thursday.
On the economic calendar today we have existing home sales at 10am followed by a 2-year note auction at 1pm.
There are major tech earnings due out this week, but they do not kick-off until Wednesday after-market-close.
Yesterday we printed a normal variation up. The day began with a gap up and two way auction, with price compressing into a tight range above last Friday’s midpoint. Sellers made an early attempt to close the overnight gap up but were met with strong responsive buying ahead of the Friday naked VPOC. This turned the auction higher, and we spent the rest of the day slowly grinding higher, never taking out last Friday’s high but closing near high of day.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7979.25 and taking out Thursday high 7992.25. Look for sellers up at 8000 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 7948 then continue down through overnight low 7935. Look for buyers down at 7931 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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