NASDAQ futures are coming into the second day of the third week of Black History Month (option expiration week) gap up after an overnight session featuring elevated range on extreme volume. Price drove higher Monday night until about 2am New York when sellers showed up right along the 13,900 century mark. Since then the auction has been balanced, balancing in the middle of the overnight range. As we approach cash open, price is hovering up beyond all prior highs.

On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am.

Last week featured a gap up then a slow rally through Tuesday. Fast selling Wednesday morning was ultimately erased by early Thursday buyers. Price chopped along the highs until a late Friday ramp higher put us back on the highs. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a double distribution trend up. The day began with a gap down in range and after a mini drive down on the open a sharp excess low formed before sellers could take out the Thursday low. Price chopped along the open print for an hour before going range extension up and closing the overnight gap. Price continued higher, taking out the Thursday high by a few point before flagging along the highs for several hours. A late-day ramp say price rally hard into the close and ultimately close on the highs.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 13,900 before two way trade ensues.

Hypo 2 sellers work into the overnight inventory and close the gap down to 13,814.75. Look for buyers down at 13,776 and for two way trade to ensue.

Hypo 3 stronger sellers trade down to the Friday naked VPOC 13,738.75 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the fifth day of the second week of Black History Month down about -40 after an overnight session featuring normal range and volume. Price was balanced overnight, balancing along the upper half of Thursday’s range, and as we approach cash open price is right along the Thursday midpoint.

On the economic calendar today we have consumer sentiment at 10am.

Yesterday we printed a neutral day. The day began with a gap up in range and after a choppy open where sellers were unable to close the overnight gap we began a slow campaign higher. The buying stalled shortly after going range extension up. Then a hard sell hit the tape during New York lunch, around 12:30pm, pressing the overnight gap fill and beyond, probing a bit below the Wednesday midpoint and tagging the naked VPOC. At this point we were in a neutral print and and excess low formed. Buyers then worked price back up to near where the open print was. Sellers attempted a secondary rotation lower but could not make a new low of day. This set up a ramp back to the upper quadrant of the daily range into the close.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 13,721.50. From here we continue higher, taking out overnight high 13,742 on the way to tagging 13,800.

Hypo 2 stronger buyers sustain trade above 13,807 early on, setting up a run to 13,882.50.

Hypo 3 sellers press down through overnight low 13,663.25 setting up a run down to 13,600. Look for buyers down at 13,571.50 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the fourth day of the second week of Black History Month gap up after an overnight session featuring normal volume on extreme range. Price was balanced overnight until about 3am New York when buyers stepped in and drove the bid 50 points higher. At 8:30am jobless claims data came out slightly worse than expected and as we approach cash open price is hovering in the upper quadrant of Wednesday’s range.

Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 30-year note auction at 1pm.

Yesterday we printed a normal variation down. The day began with an open auction inside range, right along the Tuesday high. Price spiked a bit higher during the opening swings before tightly chopping for about 45 minutes. Then sellers stepped in and drove back into the Tuesday range, effectively closing the overnight gap then continuing to drive down through the Tuesday low. There was a brief rotation higher before a secondary rotation of sellers saw price down a few point below last Friday’s low. That would mark the end of the selling campaign. From there onward the auction was upward. Sellers defended the midpoint the first time it was tested but buyers reclaimed it late in the session. We ended the day a few points above the mid.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through the Wednesday high 13,762 to set up a tag of 13,800 before two way trade ensues.

Hypo 2 stronger buyers sustain trade above 13,807 early on, setting up a run to 13,882.50.

Hypo 3 sellers work into the overnight inventory and close the gap down to 13,667.25. From there we continue down through overnight low 13,612.50. Look for buyers down at 13,600 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the third day of the second week of Black History Month up a quick +60 after an overnight session featuring elevated volume on extreme range. Price campaigned higher overnight, rallying up beyond the Tuesday high until about 5:30am New York when sellers were able to briefly work price back down into the Tuesday range. At 8:30am CPI data came out below expectations:

The prices are lovely, soft, and weak
And miles to go before overheat. pic.twitter.com/s9Na9cbubU

— George "Grants To State & Local Gov NOW" Pearkes (@pearkes) February 10, 2021

As we approach cash open price is back above the Tuesday high.

Also on the economic calendar today we have crude oil inventories at 10:30am, a 10-year note auction at 1pm, then both a speaking engagement from Fed Chairman Powell and a Treasury Statement from Secretary Yellen.

Yesterday we printed a normal variation up. The day began with a gap down in range, with price beginning the day right in the middle of Monday’s range. Buyers drove higher off the open, closing the overnight gap and continuing beyond the Monday high to tag the first of our Fibonacci extensions. Upward price discovery stalled out shortly after going range extension up and we spent the rest of the session chopping along the midpoint, eventually closing right along it.

Heading into today my primary expectation is for buyers to drive away from the Tuesday high 13,735.25 by working up through overnight high 13,769.25 to set up a tag of 13,800. Then look for the third reaction to all the 2pm economic information to dictate direction into the second half of the day.

Hypo 2 stronger buyers sustain trade above 13,807 setting up a run to 13,882.50. Then look for the third reaction to all the 2pm economic information to dictate direction into the second half of the day.

Hypo 3 sellers work into the overnight inventory, reclaiming the Tuesday range 13,735.25 early on and sustaining trade below it to set up a gap fill down to 13,690.25. Sellers continue lower, taking out overnight low 13,664.25. Then look for the third reaction to all the 2pm economic information to dictate direction into the second half of the day.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the second day of the second week of Black History Month down a mild -20 after an overnight session featuring normal range and volume. Price worked sideways overnight, essentially marking time after briefly poking above the Monday high around 7:30pm. As we approach cash open price is hovering above the Monday midpoint.

On the economic calendar today we have JOLTS jobs openings at 10am followed by a 3-year note auction at 1pm.

Yesterday we printed normal variation down. The day began with with a gap up above last Friday’s range. There was a brief open two-way auction outside the range before buyers stepped in and took out overnight high. Said buyers stalled out within 45 minutes of the cash markets being open and we formed an excess high. Then sellers reclaimed the mid and after chopping along it once sellers worked the market range extension down, effectively closing the overnight gap and exceeding it by about 10 handles before discovering a responsive bid. Price then rallied back above the mid late in the day and ended above it.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 13,683.50. From here buyers continue higher, up through overnight high 13,698, tagging 13,729.75 before two way trade ensues.

Hypo 2 sellers gap-and-go lower, taking out overnight low 13,651 early on to set up a move down to 13,600 before two way trade ensues.

Hypo 3 stronger sellers trade down to 13.532 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the second full week of Black History Month up a quick +60 after an overnight session featuring elevated range and volume. Price steadily campaigned higher overnight, trading to record heights and holding the levels as we approach cash open.

On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am.

Last week saw a ap up to begin the week then a conviction buying range Monday. Pro gap up into Tuesday and move conviction buying. Some consolidation through early Thursday, then a continuation of the rally through Thursday and Friday. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation up. The day began with a gap up outside of range. Sellers quickly resolved the gap with a open drive down. The selling only managed to press a bit below the Thursday close before a responsive bid stepped in. Said buyers reclaimed the morning daily midpoint and sustained trade above it before setting up a rotation higher. Said rotation made a new record high before price eventually fell back to the mid and ended the day chopping along the top side of it.

Heading into today my primary expectation is for buyers to gap-and-go higher, taking out overnight high 13,687.25 and tagging 13,700 before two way trade ensues.

Hypo 2 stronger buyers sustain trade above 13,729 setting up a run to 13,800.

Hypo 3 sellers work into the overnight inventory and close the gap down to 13,605.75. Look for buyers down at 13,533.25 and for two way trade to ensue.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into the holiday shortened week gap up after an overnight session featuring extreme range and volume. Price action during the globex session has not accomplished much despite price being +100 from the Friday close. Sunday evening sellers pushed us a few points below the Friday low before the rest of the session was spent rotating higher. Around 10:30pm New York the Friday high was taken out. As we approach cash open price is hovering in the upper quadrant of last Friday’s range.

On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am.

Last week began with a small gap down that buyers were unable to reclaim all week on the NASDAQ and S&P. Sellers were seen active Thursday afternoon and into Friday. But the Dow and Russell were bullish divergent all week. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation down. The day began with a slight gap down. Buyers were able to resolve the overnight gap during an open two way auction but after briefly spiking about +30 beyond the gap fill heavy sellers stepped in and made a new low on the week. A second low was made before lunch but was met by strong responsive buyers who sent price up through the daily midpoint. After chopping along the topside of the mid fro several hours sellers assumed control of the tape again and we ended the day with sellers campaigning price lower but before a new low could be made market closed for the weekend.

Heading into today my primary expectation is for buyers to sustain trade above 12,900 setting up a run to 12,964.50 before two way trade ensues.

Hypo 2 stronger buyers trade up through 13,000 and sustain trade above it, setting up a move to tag 13,082.

Hypo 3 sellers press down to 12,812. After a bit of a battle they continue to campaign lower, closing the Friday gap down at 12,772.25 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into Thursday flat after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing above the Wednesday midpoint after briefly exceeding the Wednesday high early in the Globex session. At 8:30am jobless claims data came out worse than expected and as we approach cash open price is hovering in the upper quadrant of Wednesday’s range.

Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by Powell speak at 12:30pm.

Yesterday we printed a normal variation up. The day began flat-ish and after an open-two way auction buyer stepped in and drove price up through the Tuesday high. The rest of the session was spend consolidating along the day’s high, with price chopping a tight range in the upper quad of the day’s range,making a little bit higher of a high in the afternoon and closing in the upper quad.

Heading into today my primary expectation is for buyers to work up through overnight high 13,015 setting up a run to 13,082.25 before two way trade ensues.

Hypo 2 sellers press down through overnight low 12,922.50 setting up a tag of 12,900.

Hypo 3 stronger sellers trade down to 12,800 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into Wednesday with a slight gap down after an overnight session featuring extreme range on elevated volume. Price was balanced overnight. First it poked higher, then lower, but ultimately trade was confined within the Tuesday range. At 8:30am CPI data came out in-line with expectations and as we approach cash open price is hovering a bit above the Tuesday midpoint.

Also on the economic calendar today we have crude oil inventories at 10:30am, a 30-year bond auction at 1pm and beige book/treasury statement at 2pm.

Yesterday we printed a normal variation down. The day began with a slight gap down that buyers quickly resolved during an open two-way auction. Buyers would soon mark the high of the session, just a few ticks beyond the Monday mid. Then for several hours we chopped sideways before seeing sellers become initiative into New York lunch. These sellers worked price down into last Thursday’s conviction buying zone before discovering a strong responsive bid. These buyers assumed control of the tap and steadily campaigned price up through the daily mid. Then they defended the mid once late in the session before ending the day a bit above it.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 12,885.75. From here buyers continue higher, up through overnight high 12,935. Look for sellers up at 12,950 and for two way trade to ensue.

Hypo 2 stronger buyers rally to 13,000 before two way trade ensues.

Hypo 3 sellers press down through overnight low 12,820 and test 12,800. If sellers overwhelm the bid at 12,800 we could sell a fast liquidation down to 12,700.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing in the lower half of Monday’s range. As we approach cash open, price is hovering near the Monday low.

On the economic calendar today we have JOLTS jobs openings at 10am followed by a 10-year note auction at 1pm.

Yesterday we printed a neutral extreme down. The day began with a gap down in range. Sellers drove down into the opening print, taking out the Friday low and nearly tagging the naked VPOC from Thursday before catching a strong responsive bid about 15-minutes into the session. Buyers then campaigned higher, making an early range extension up before price fell back to the midpoint. Buyers defended the first test of the mid and made a new high on the day but buyers could not close the overnight gap. Instead the auction stalled and reversed before it could tag the Friday VPOC. The second check back to the midpoint saw sellers overrun it and late in the afternoon we pressed into a neutral print. Price worked a bit off the lows but still ended the day in the lower quadrant.

Heading into today my primary expectation is for buyers to press up through overnight high 12,959. Look for sellers up at 13,000 and for two way trade to ensue.

Hypo 2 sellers work into the overnight inventory and close the gap down to 12,914.75 before continuing lower, down through overnight low 12,886.25. Look for buyers down at 12,866.50 and for two way trade to ensue.

Hypo 3 stronger sellers trade down to 12,800 before two way trade ensues.

Levels:

Volume profiles, gaps and measured moves:

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