NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price drifted higher overnight, slowly and methodically, and as we approach cash open prices are hovering in the upper quadrant of Monday’s range.
The only economic events today are a 4-week T-bill auction at 11:30am and a 2-year note auction at 1pm.
Yesterday we printed a normal variation down. The day began with a gap up and driver higher. Buyers stalled ahead of last Thursday’s high and price made a sharp move back down into last Friday’s range. Sellers were unable to close the overnight gap. We worked back to the daily mid then another sell rotation came through, again unable to close the overnight gap. Responsive buyers (responsive relative to the Monday open, initiative relative to the Friday close) stepped in at the end of the day and ramped us back to the daily mid.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6915.25. From here we continue lower, down through overnight low 6908.75. Look for buyers ahead of 6890 and two way trade to ensue.
Hypo 2 buyers gap-and-go higher, up through overnight high 6947.50 setting up a test of the Monday high 6957. Look for sellers up at 6963 and two way trade to ensue.
Hypo 3 stronger buyers close the gap up at 6973.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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