NASDAQ futures are coming into Tuesday up a quick +50 after an overnight session featuring extreme range and volume. Price balanced overnight, first rallying up into the weekend gap and then balancing inside of it. At 8:30am housing starts/permits data came out mixed with starts slightly stronger than forecasts and permits slightly below. As we approach cash open price is hovering about halfway between Monday’s high and last Friday’s low.
There are no other economic events scheduled today.
Yesterday we printed a neutral day. The day began with a pro gap down and after a fast open-auction-outside range buyers made an attempt higher. Said attempt was rejected by sellers who were active ahead of the 07/08 low. Sellers quickly drove to a new daily low before price chopping along the lows for a bit, checked back to the mid, made an early range extension down which was met with sharp responsive buying. Said buyers pushed us (barely) into a neutral print before price fell back down through the daily mid. Price chopped along the bottom-side of the mid right up until settlement when buyers drove higher, back to the daily high by the close.
Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 14,566 before two way trade ensues.
Hypo 2 buyers gap-and-go up to 14,682.25 before two way trade ensues.
Hypo 3 stronger sellers close the gap 14,566 then continue lower, reclaiming 14,500 and sustaining trade below it to set up a move down to 14,400.
Volume profiles, gaps and measured moves: