NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range on elevated volume. Price held Monday’s upper quad overnight before working higher. At 8:30am durable goods orders came in below expectations. As we approach cash open price is hovering near the 3/22 (two Friday’s back) highs.
There are no other important economic events today.
Yesterday we printed a double distribution trend up. The day began with a gap up after strong economic data came out of China Sunday night. Sellers initially pushed price lower off the open but were unable to regain last week’s high, the 3/26 high was rejected by buyers before the first hour of trade completed. We then began to campaign higher, trending slowly upward for the rest of the session, with the volume profile marked by value building then ascending higher.
Double distribution trend up.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7497.75. From here we continue lower, down through overnight low 7483.75. Look for buyers down at 7464.25 and two way trade to ensue.
Hypo 2 stronger sellers trade down to 7415 and close the gap at 7410.50. Look for buyers down at 7400 and two way trade to ensue.
Hypo 3 buyers work up through overnight high 7511.75 setting up a move to close the swing high gap at 7535. Look for sellers up at 7538.50 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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