NASDAQ futures are coming into the second day of the first full trading week of September with a slight gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the bottom-side of Monday’s midpoint until 8:30 CPI data introduced some buyers. CPI data came in a bit below expectations and investors reacted with buyer orders that worked price up to 15,500 which is still well within the Monday range. As we approach cash open price is hovering around 15,00.
There are no other economic events scheduled for today.
Yesterday we printed a double distribution trend down that kind of also resembles a normal variation down. The day began with a gap up in range. After a brief open two-way auction sellers stepped in and drove price lower, effectively closing the overnight gap and continuing down through the Friday low. Sellers worked down into the Friday 08/27 range before any responsive buyers appeared. Price then chopped along the lows for the rest of the session, making little new lows along the way and pinning the value point of control down near the lows but eventually closing back near the daily midpoint. The day structure resembles a lowercase letter-b shape indicating a long liquidation.
Heading into today my primary expectation is for buyers to continue the buying campaign spurred on by CPI data. Look for buyers to claim 15,500 and sustain trade above it early on setting up a run to 15,571.50.
Hypo 2 sellers to work into the overnight inventory and close the gap down to 15,439.50. Look for buyers below at 15,400 and for two way trade to ensue.
Hypo 3 stronger sellers trigger a liquidation down to 15,311.75.
Volume profiles, gaps and measured moves:
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