NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range and volume. Price worked higher overnight, trading up into levels unseen since October 9th. As we approach cash open, price is hovering up in the 10/09/18 range.
On the economic calendar today we have factory orders and durable goods at 10am.
Yesterday the NASDAQ printed a neutral day. The day began with a slight gap down followed by a drive higher. Price took out recent swing highs and managed to go range extension up before responsive sellers stepped in. Said sellers took price down to last Friday’s midpoint, pushing us neutral before we eventually climbed back above the daily mid.
Heading into today my primary expectation is for buyers to reject a move back into the Monday high 7379.50 setting up a move up through overnight high 7395.50 to target 7422.25 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 7360 setting up a move down through overnight low 7347. Look for buyers down at 7334 and two way trade to ensue.
Hypo 3 stronger sellers trade us down to 7309.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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