NASDAQ futures are coming into Tuesday gap up about +90 after an overnight session featuring extreme range and volume. Price was balanced overnight, steadily drifting higher in a balanced manner. The move began shortly after closing bell Monday when major NASDAQ component Facebook reported earnings. The social media firm reported earnings slightly better-than-expected and announced a $50 billion dollar boost in share buyback authorization. Several analysts upgraded their price targets afterwards. Price action in the NASDAQ lifted to levels unseen since September 10th, and as we approach cash open price is hovering inside the 09/10 range.
Facebook shares are +1.13% in premarket trade.
On the economic calendar today we have new home sales and consumer confidence at 10am and a 2-year note auction at 1pm.
Major NASDAQ components Microsoft and Alphabet are set to report earnings after the bell.
Yesterday we printed a double distribution trend up. The day began with a gap up in range. After a brief open-test-higher sellers drove down into the range and resolved the overnight gap. Just below the gap fill responsive buyers stepped in and worked price back up through the daily midpoint. Price steadily ascended higher from here and by New York lunchtime price was range extension up. Price accelerated through the lunch hour taking out last week’s high before flagging a bit and then making another high. Price was fading off the high into the close before settlement action shot price back up to the daily high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 15,513.25 before two way trade ensues.
Hypo 2 buyers reject a move into Monday high 15,541.25 setting up a run up through overnight high 15,612.25.
Hypo 3 buyers gap-and-go higher, trading up to 15,677.25 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
