NASDAQ futures are coming into the third full day of President elect Biden gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along the Tuesday midpoint until about 3:30am when buyers broke range and proceeded higher. The buyers worked price up through the Tuesday high, and as we approach cash open, price is hovering up near the Tuesday high.
There are no economic events today.
Yesterday we printed a neutral day. The session began with a gap down below the prior three day range. After an open two-way auction sellers stepped in and worked price lower, pressing an early range extension down and taking out last Wednesday’s low by a few points. Then the auction reversed and pressed up through the daily high, going into a neutral print. Buyers could not however close the overnight gap. Instead we reverted back to the daily midpoint and ended the session chopping along it.
Heading into today my primary expectation is for sellers to work into the overnight inventory and tag 11,700. From here buyers step in, take out overnight high 11,785 and tag 11,800 before two way trade ensues.
Hypo 2 buyers gap-and-go higher, trading up through overnight high 11,785 then 11,800 and sustaining trade above it. This set up a run to 11,900 before two way trade ensues.
Hypo 3 sellers work a full gap fill down to 11,624. Look for buyers down at 11,600 and for two way trade to ensue.
Levels:
Volume profiles, gaps and measured moves:
