NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on extreme volume. Price worked higher overnight, trading up through the Monday high and tagging 7900 (primary hypo from the Monday report) before fading lower. As we approach cash open, price is hovering a few ticks above the Monday high.
On the economic calendar today we have two odd Treasury auctions, 13- and 26-week T-bill auctions at 11:30am.
Yesterday we printed a normal variation up. The day began with a slight gap down. During an open two-way auction sellers were unable to trade down through the Friday low, instead stopping right on the bottom tick before the auction turned higher. After a brief range extension up, price spent the rest of the session chopping along the top-side of the daily mid, eventually closing a few ticks below it. This tight range came after a heavy flow of news over the weekend including President Donald Trump tweeting about positive developments in the ongoing trade negotiations with China and military skirmishes in the Middle East.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7908.25 and continuing up to 7919.75 before two way trade ensues.
Hypo 2 stronger buyers trade up to 7941.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 7854.75 setting up a move to target 7800 before two way trade ensues.
Volume profiles, gaps, and measured moves: