NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on normal volume. Price worked higher, about halfway up into last Tuesday’s range before settling into two-way trade. At 8:30am Advance Retail Sales data came out better-than-expected.
Also on the economic calendar today we have NAHB Housing Market Index and Business Inventories at 10am, 52- and 4-week T-bill auctions at 11:30am, and Long-term TIC flows at 4pm.
Yesterday we printed a double distribution trend up. The week began with a pro-gap up and we spent the rest of the day slowly trending higher. It was an extremely strong push, one that makes the expectation of sellers resurfacing later this week less likely than anticipated on Sunday.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5910.50. From here we continue lower, down through overnight low 5905.75, tagging 5900 before two way trade ensues.
Hypo 2 buyers work up through overnight high 5945 and probe last week’s high 5972.75. Sellers are just above and two way trade ensues.
Hypo 3 stronger sellers press down to 5876.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
