Nasdaq futures are coming into Tuesday gap down. The overnight session was normal by all measures and featured balanced price action with a slight downward skew. The action was contained within yesterday’s range.
Today is the lightest calendar day of the week economically with only Factory Orders slated for release at 10am.
Yesterday we printed a normal variation down. The bulk of the downward move occurred in one big impulse move lower around noon. Once complete we churned sideways for a few hours before responsive buyers stepped and pushed us back to the mid.
Intermediate term we are a few days out from a “check back” to the scene of a major breakout. After bouncing off the former resistance we have stalled a bit.
Heading into today my primary expectation is for buyers to push into this overnight inventory and close the gap up to 4573.25. I have drawn a green line on my market profile chart around 4575 and will be using this level as my bias pivot. If buyers can push up through this level then I expect them to continue up to 4587.50 then 4593.50.
Hypo 2 is buyers struggle to fill the overnight gap and fail to reclaim the 4575 mark setting up a move below overnight low 4555.75. Look for sellers to test below yesterday’s session low 4540.50 setting up a fast move to the HVN at 4530. Stretch targets are 4515.75 and 4505.50.
Levels:
Thanks Raul
Followed you on twitter today, great updates all day thanks.