NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated volume on normal range. Price worked higher overnight, climbing to a new record high before coming into balance. As we approach cash open, price is hovering above Monday’s range.
On the economic calendar today we have house price index at 9am, new home sales at 10am, a 52-week T-bill auction at 11:30am followed by a 2-year note auction at 1pm.
Yesterday we printed a double distribution trend up. The day began with a gap down to near the Friday low. Sellers were unable to test below Friday low during a brief 2-way auction at the open. Instead price began to campaign higher, ultimately closing the overnight gap and continuing on to make a new all-time high. The VPOC migrated higher throughout the session.
Double D trend up.
Heading into today my primary expectation is for buyers to gap and go higher, trading up through overnight high 7769.50. Look for sellers up at 7769.50 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 7734.75 then continue lower, down through overnight low 7724.50. Look for buyers down at 7713 and two way trade to ensue.
Hypo 3 stronger sellers trade us down to 7682 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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