Nasdaq futures were up modestly this morning before giving up the gains as we rolled into 8am. There are no economic events which align with this selling. Instead it appears to simply be some early sell flow. As we approach US cash open the Nasdaq futures are flat on a compressed 16.5 point range of trade.
Buyers pressed away from Friday’s range early yesterday morning before finding responsive selling back inside the range. At this point expectation was for a move back to the micro composite volume point of control at 4066 but instead we found buyers who rejected the idea. These buyers took us back up above the daily midpoint in the afternoon. Overall price and value migrated up relative to Friday.
This is occurring inside intermediate term balance. As this balance matures, now going on our 13th session, expectation of a break increases. As we head into Tuesday’s trade, we are priced in the upper tail of balance. If buyers are not strong to initiate trade away from this area, then we are likely to go explore the lower boundaries of balance in short order. I have highlighted the intermediate term balance below:
With that in mind, I have noted the key price levels I will be observing on the following market profile chart:
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