NASDAQ futures are higher overnight and we are currently priced to open inside of yesterday’s range but outside of value which presents an elevated potential for big intraday moves. The overnight profile is also interesting because it shows no real consensus on value. Instead we have a toothy profile with buyers pushing higher.
Price traversed through the volume cave which delineates where our upper-most intermediate term balance zone exists. We are currently trading just above it which creates the potential opportunity for an overnight gap fill more possible and rapid due to the low volume structure beneath our current pricing. The intermediate term is seller controlled but showing signs of balancing. Yesterday morning sellers were unable to press to new lows verses Monday. Instead we stabilized at a low volume node just above the Monday low and reversed higher. Sellers need to prevent acceptance of trade above 3645.75 to sustain their control of the intermediate term. The long term auction is still buyer controlled as seen on a daily chart. I have highlighted this key price level and the volume cave below on the following volume profile chart:
The short term auction is out of balance and buyer controlled. This can be seen as value migrating higher. Buyers need to make a new high above 3645.75 (overnight high) to firm up their control in the short term. I have highlighted this level and a few potential scenarios on the following market profile chart:Twitter