NASDAQ futures are coming into Tuesday down -40 after an overnight session featuring extreme range and volume. Price worked to a new record high overnight before giving up a portion of the gains. As we approach cash open, price is hovering near Monday’s midpoint.
On the economic calendar today we have JOLTS jobs openings at 10am followed by a 3-year note auction at 1pm.\
Yesterday we printed a normal variation up. Monday kicked off with a pro gap up followed by a test drive auction higher. The buying continued clean through the morning, stalling out just before New York lunch. Sellers retraced price back down to the midpoint before responsive buyers (responsive relative to the daily high, initiative relative to the Monday open) defended the mid and worked price higher. We ended the day near session high but did not make a new high during regular trading hours.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 10,600. From here we continue higher, up through overnight high 10,664.50 before two way trade ensues.
Hypo 2 sellers gap-and-go lower, tagging 10,500 before two way trade ensues.
Hypo 3 stronger sellers trade down to 10,045.25 before two way trade ensues.
Volume profiles, gaps and measured moves:
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