NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range on elevated volume. Price worked higher overnight, exceeding the high print from Monday before stalling out around last Friday’s high. The extended hours price action built nicely into the balance we are forming after the discovery down seen late last week (see Market Profile chart below).
The economic calendar today features House Price Index at 9am and a 4-week T-bill auction at 11:30am.
Yesterday we printed a normal day, which is anything but. They only occur about 6% of the time. The day began flat and sellers stepped in on the open. They pushed hard for the first hour, forming a wide initial balance, before discovering a responsive bid. We spent the rest of the day trading inside the initial balance range, earning the normal designation.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5795. From here we continue lower, down through overnight low 5778.75. Look for buyers down at the 5772 low volume node and two way trade to ensue.
Hypo 2 buyers gap-and-go higher and work towards 5862.25 before two way trade ensues.
Hypo 3 stronger sellers work down to 5737.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
Don’t think so my friend. We go higher. Too many people thought markets would tank. Up and away!
legging into some shorts here, see hypo 2
Blasted right past it…let’s see how she closes. Looking good for bulls here imo.
I took a beating today o_0
Yesterday morning didn’t feel like the bunker buster move, also legging into some shorts here