NASDAQ futures are coming into Tuesday gap down after an overnight session featuring extreme range and volume. Price worked lower overnight, trading down through last Friday’s low around 5:30am New York during a move that began around the European open. As we approach cash open, price is balanced inside of last Friday’s range along the lower quadrant.
On the economic calendar today we have a 52-week T-bill auction at 11:30am followed by a 3-year Note auction at 1pm. Then at 1:50pm Fed Chairman Jay Powell will do some speaking at some conference.
Federal Reserve Chairman Jerome Powell to speak at the 61st National Association of Business Economics Annual Meeting in luncheon remarks entitled “A View from the Federal Reserve Board of Governors” in Denver, Colorado.
Yesterday we printed a normal variation up. The day began with a gap down inside range that buyers quickly resolved shut. The buying continued, trading up near last Tuesday’s strong selling reaction. Responsive sellers were present in this area again and rotated price back down to the daily midpoint. Buyers defended the area through New York lunch, thrusting price back up to a new daily high before again discovering a responsive bid. This time sellers took price down through the mid and pivoted along it, rotating price back down near the daily low (but not pressing us neutral) into the close.
Heading into today my primary expectation is for buyers to work into the overnight inventory and attempt to reclaim the Monday low 7724.25. Expect a battle here before buyers prevail and continue higher, closing the overnight gap 7739.25. Look for sellers up at 7750 and two way trade to ensue.
Hypo 2 sellers reject a move back into Monday low 7724.25 setting up a move down through overnight low 7665.50. Look for buyers down at 7604.50 and two way trade to ensue.
Hypo 3 stronger buyers trade price back up to 7800 century mark. Look for sellers up at 7820.25 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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