NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked up briefly to a record high, then lower in a session that was balanced overall.
The economic calendar is light today. We had Housing starts/permits at 8:30am. At 11:30am the US Treasury is auctioning off some 4-week T-bills.
Yesterday we printed a normal variation up. The day began with a big gap up, nearly of the ‘pro’ variety. The gap behaved in the breakaway variety, up to record highs then pushing a bit higher to form a normal variation up.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6534.50. From here we continue higher, up through overnight high 6545.75. Look for sellers up at 6573.50 and two-way trade to ensue.
Hypo 2 slower day, pushes up through overnight high 6545.75 then stalls out around 6550 settling into two-way trade.
Hypo 3 something more curious, a move down to close the open weekend gap down at 6499. Look for buyers down at 6492.50 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
