NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, trading up near the gap left behind on 07/25. As we approach cash open prices are balancing out up beyond Monday’s high.
On the economic calendar today we have a 4-week T-bill auction at 10am, a 3-year Note auction at 1pm, and consumer credit at 3pm.
Yesterday we printed a double distribution trend up. The day began flat then with a buying drive off the open. Price continued higher in the late morning after a brief two way auction above the daily midpoint. The day ended with the market continuing to explore higher prices.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7444. From here we continue lower, down through overnight low 7437. Look for buyers down at 7436 and two way trade to ensue.
Hypo 2 buyers reject a move back into Monday’s high 7448.25 setting up a move to take out overnight high 7474.50. Look for sellers up at 7495.50 and two way trade to ensue.
Hypo 3 stronger buyers trade us up to 7505.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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