NASDAQ futures are coming into Tuesday with a slight gap down after an overnight session featuring extreme range and volume. Price worked lower overnight after briefly poking up beyond the Monday high. The selling pressure took prices down near last Thursday’s low but was unable to probe beyond the Thursday low before coming into balance. As we approach cash open, price is hovering along the Friday low.
On the economic calendar today we have new home sales and consumer confidence at 10am, also Fed Chairman Powell talking economic outlook and policy at 1pm at the same time as a 2-year note auction.
Yesterday we printed a normal variation down, barely. The day began with a gap up that sellers quickly resolved. The rest of the day was spent chopping in a tight balance. Very late in the session we went range extension down by one tick. This is the ‘barely’ that made it a normal variation down instead of the uncommon ‘normal’ day.
Heading into today my primary expectation is for buyers to regain the Monday range and close the gap up to 7759.50, From here we continue higher, taking out overnight high 7779.50 before two way trade ensues.
Hypo 2 sellers reject price down and away from Monday low 7749.25 setting up a move to take out overnight low 7714.25. Look for buyers down at the 7700 century mark and two way trade to ensue.
Hypo 3 stronger buyers tag 7800 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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