NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price held above the Monday midpoint before working toward Monday’s high as we approach the open. At 8:30am Trade Balance data was worse than expected. The data yielded no market reaction.
Also on the economic calendar today we have Factory and Durable Goods Orders at 10am followed by both a 4- and 52-week T-bill auction at 11:30am.
Yesterday we printed a normal variation up. We started the week gap up and despite a hard sell to start the session, buyers managed to reject a move back into last Friday’s range. Instead we drove higher, deep into the move made last Thursday (trend day) before settling into two-way trade.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4780.75. Look for a move down through overnight low 4772.75 then responsive buyers down at 4752.50 before two way trade ensues.
Hypo 2 buyers press up through Monday high 4795.75 triggering a rally up to the open gap at 4821.50. Look for sellers up at 4826.75 and two way trade to ensue.
Hypo 3 strong sellers work down through 4750 triggering a liquidation down to the weekly gap at 4738.25.
Volume profiles, gaps, and measured moves: