NASDAQ futures are coming into Tuesday flat after an overnight session featuring elevated volume and normal range. Price was balanced overnight and traded along the upper quadrant of Monday’s range. At 8:30am Advance goods trade balance and Durable goods orders both came in below expectations. At 9am the Case-shiller home price index came out better than expected.
Also on the economic docket today we have consumer confidence at 10am. At the same time, new Federal Reserve chief Jerome Powell will begin testifying to the House Financial Services Committee. This will be our first time hearing how the new Fed chair handles Q&A in Congress.
There are also 4- and 52-week T-bill auctions at 11:30am.
Yesterday we printed a double distribution trend up. The week began with a gap up and early drive higher. The morning featured a bit of two-way action before buyers ultimately stepped in and initiated new risk, slowly trending the market higher for the rest of the day.
Heading into today my primary expectation is for buyers to work up beyond overnight high 7009. From here buyers continue higher, up to 7018.50 before two way trade ensues.
Hypo 2 sellers press down through overnight low 6977.25, setting up a move to target the naked VPOC at 6960. Look for buyers ahead of 6946.50 and two way trade to ensue.
Hypo 3 stronger sellers work a full gap fill down to 6923.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
