NASDAQ futures are coming into Tuesday with a slight gap down after an overnight session featuring extreme range and volume. Price was balanced overnight, slowly fading lower in a balanced way until taking out Wednesday low. At 8:30am initial/continuing jobless claims data came out worse than expected. As we approach cash open, price is hovering in the lower quadrant of Wednesday’s range.
Also on the economic calendar today we have 4- and 8-week T-bill auction at 11:30am followed by a 7-year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap up that sellers quickly resolved shut before buyers spiked price. Before 10am sellers were fading this buy spike and sending price to a quick new low of day. This all happened in the first 45 minutes of trade, and would mark session low for the rest of the day. WE slowly rotated back up to the midpoint, then buyers accelerated as they crossed through it, setting up a move to new high of day and pushing us range extension up. We eventually tagged the 7700 composite VPOC and held it for about 1.5 hours. Sellers drove price back down through the mid during settlement.
Heading into today my primary expectation is for buyers to fill the overnight gap up to 7463.25 then continue higher, up through overnight high 7549.5. This sets up a run to 7600 before two way trade ensues.
Hypo 2 stronger buyers trade up to 7700 before two way trade ensues.
Hypo 3 sellers press down through overnight low 7310.25 setting up a move to tag 7300. Look for buyers down at 7216.75 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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