NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme range on elevated volume. Price was drifting lower overnight, falling down-and-away from the Monday midpoint until about midnight when a strong responsive bid stepped in. The rest of the session was spent rotating higher, unidirectionally trading up through the Monday high. As we approach cash open, price is hovering beyond the Monday range.
On the economic calendar today we have industrial production at 9:15am.
Yesterday we printed a normal variation up. The day/week began with a gap up and drive higher, driving price up through the liquidation zone printed last week. Buyers continued their campaign until just before New York lunch, then the rest of the session saw price check back to the midpoint, buyers defend it once, then a final sell push down through the mid during the closing trade. we ended the session a bit below the mid.
Heading into today my primary expectation is for buyers to sustain trade above the Monday high 12,549.50 setting up a move to tag 12,593 before two way trade ensues.
Hypo 2 stronger buyers sustain trade above 12,600 setting up a run to 12,639.
Hypo 3 sellers work into the overnight inventory, reclaiming the Monday high 12,549.50 early on and seetin up a gap fill down to 12,468.50.
Levels:
Volume profiles, gaps and measured moves:
