NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on extreme volume. Price spiked higher overnight, working up into last Friday’s sell-of before settling into balance. As we approach cash open, price is hovering above Monday’s high.
On the economic calendar toady we have consumer confidence at 10am followed by a 2-year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a slight gap up that was resolved during the opening two-way auction. Sellers then stepped in and worked price down below last week’s lows by a few ticks before buyers rejected the probe lower. Price was choppy through most of the morning before rallying to range extension up ahead of New York lunch. Price then chopped along the highs for the rest of the session before briefly revisiting the daily midpoint before the close.
Heading into today my primary expectation is for buyers to gap-and-go higher. The way balance is sustaining above Monday’s highs suggests buyers intend to work up through overnight high 7904.75. Look for sellers up at 7914.25 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and reclaim Monday’s high 7865.75 setting up a gap fill down to 7850.75. From here we continue lower, down through overnight low 7848.75. Look for buyers down at 7800 and two way trade to ensue.
Hypo 3 stronger buyers trigger a full on rally. First sustaining trade above 7920.75 then continuing up to 7941.50.
Levels:
Volume profiles, gaps, and measured moves:
