NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on extreme volume. Price was balanced overnight, spending much of the session inside of Monday’s range. Then, as we approach cash open, price sprung up beyond Monday range and is hovering above it.
On the economic calendar today we have a 52-week and 2-year note auction at 11:30am followed by a 7-year note auction. We also have Apple earnings after market close.
Yesterday we printed a neutral extreme up. The day began with a gap down and small move lower, trading just below last Thursday’s low before a responsive bid stepped in. Sellers made a move to range extension down ahead of lunchtime, but there wasn’t much interest in exploring lower. Instead we began a slow ascent higher, eventually pushing neutral, and we closed near session high.
Heading into today my primary expectation is for buyers to gap-and-go higher, sustaining trade above 6725 to set up a move to target 6769.50 before two way trade ensues.
Hypo 2 stronger buyers work the weekly gap fill up to 6789.75. Look for sellers up at 6800 and two way trade to ensue.
Hypo 3 sellers work into the overnight inventory and close the gap down to 6702. From here we continue lower, down through overnight low 6661. Look for price to stabilize along 6666 as we wait for Apple earnings.
Volume profiles, gaps, and measured moves:
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