NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range on elevated volume. Price was balanced overnight and continued working higher after Monday’s strong performance. At 8:30am advance goods trade balance data came out below expectations.
Also on the economic agenda today we have the case-shiller home price index at 9am, consumer confidence at 10am, a 4-week t-bill auction at 11:30am, and a 5-year note auction at 1pm.
Yesterday we nearly printed a trend up. The day began gap up. After a brief two-way open auction buyers drove higher, trading right up to the weekly upper ATR bracket before settling into a tight range. Price closed near session high.
Higher all day, closed near high, but not quite a trend day. Nearly a trend day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7568.25. Look for buyers down at 7565.25 and two way trade to ensue.
Hypo 2 buyers continue exploring open air. Gap-and-go higher. We have no overhead reference points to target.
Hypo 3 stronger sellers press down though 7565.25 setting up a move to take out overnight low 7554.50. Look for buyers up at 7534.25 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
