NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on normal volume. Price was balanced overnight before this morning when Advance Retails Sales data (8:30am) helped propel the market higher. As we approach opening bell, price is hovering below Monday’s high 4750.75.
See also: Home Depot Beats, Guides Up
There are a few other economic events today including Business Inventories at 10am and 4-Week T-bills being auctioned off at 11:30am.
Yesterday we printed a normal variation down. The day started with sellers driving price lower, down to a new cash low post election. Responsive buyers were just below the test level and two way trade ensued, below Monday’s midpoint.
My primary expectation heading into today is for sellers to work into the overnight inventory and close the gap down to 4695.25. Look for buyers right around here who work price up through overnight high 4732 to target 4750 before two way trade ensues.
Hypo 2 buyers gap and go, up through Monday high 4750.75 and rally to the CVPOC at 4807 before two way trade ensues.
Hypo 3 sellers work gap fill down to 4695.25 then take out overnight low 4688 and continue lower to test Monday low 4672.75. Look for buyers down at 4663.25 and two way trade to ensue.
Hypo 3 full-on liquidation, down through 4663.25 setting up a move to probe the post election globex low down at 4558.25.
Volume profiles, gaps, and measured moves: