NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked lower overnight and ultimately held inside the Monday range.
On the economic agenda today, we have NAHB Housing Market index at 10am, a 52-week and 4-week T-bill auction at 11:30am, and Long-term TIC flows at 4pm.
Yesterday we printed a normal variation down. The week began with a gap up and small drive higher. Sellers sold into the move by late morning we spent the rest of the day slowly auctioning lower. Then, during settlement, strong earnings out of Netflix caused the NASDAQ to spike back up.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5855.75. From here we continue higher, up through overnight high 5862.50. Look for sellers up to 5872 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 5832 and target the naked VPOC at 5817.50 before two way trade ensues.
Hypo 3 stronger sellers press down to 5805 before two way trade ensues.
Hypo 4 strong buyers sustain trade above 5872 setting up a move to target 5894.
Levels:
Volume profiles, gaps, and measured moves:
