NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked lower overnight during a balanced session.
On the economic calendar today we have JOLTS Job Openings at 10am, a 4-week T-bill auction at 11:30am, and a 3-year Note auction at 1pm.
Yesterday we printed a double distribution trend up. The week began with a gap up that sellers were unable to fill. Once sellers failed, buyers were inspired to initiate fresh risk, pressing the market higher, slowly, for the remainder of the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5933.25. From here buyers continue higher, up through overnight high 5937.75. Look for sellers up at 5942.25 then two way trade to ensue.
Hypo 2 sellers work down to 5913 before two way trade ensues.
Hypo 3 stronger sellers close the weekly gap down to 5898, then continue lower, down to 5888 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
