NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring elevated range and volume. Price worked sideways overnight during a balanced session that held onto Monday’s mid. As we approach cash open, price is hovering just above the key intra-day reference point.
On the economic calendar today we have new home sales and ISM non-manufacturing at 10am, a 4- and 8-week T-bill auction at 11am, and a Treasury budget release at 2pm.
Yesterday we printed a normal variation down. The day began with a gap up and slight push higher before sellers stepped in and drove price lower, successfully closing the overnight gap and continuing lower, down near last Thursday’s low (right along the weekly ATR band), before buyers stepped in. Said buyers worked price back up above the daily midpoint by end-of-day.
Heading into today my primary expectation is for buyers to work up through overnight high 7169.25 setting up a move to target 7186.25 before two way trade ensues.
Hypo 2 sellers work down through overnight low 7125.75, setting up a move to target 7100 before two way trade ensues.
Hypo 3 stronger buyers trade us up to 7200 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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