NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, making a new record high before finding sellers just ahead of 8250 and coming into balance. As we approach cash open, price is hovering just above the Monday high.
On the economic calendar today we have trade balance at 9:30am, ISM non-manufacturing/services PMI at 11am, 52-week T-bill auction at 12:30pm then a 3-year note auction at 2pm.
Yesterday we printed a normal variation down. The day began with a gap up to new all-time highs. After a two-way auction sellers stepped in and slowly worked price lower. Their campaign ended around 12:15pm New York lunch when buyers stepped in and rotated price back up and through the daily midpoint. We oscillated back into the lower quadrant once more, not making making new lows before returning to the midpoint by end-of-day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 8215.75. From here we continue lower, down through overnight low 8206. Look for buyers ahead of 8200 and two way trade to ensue.
Hypo 2 stronger sellers work down into the weekend gap and fill the gap down to 8159.25 before two way trade ensues.
Hypo 3 buyers gap-and-go higher trading up through overnight high 8248 and probing open air. Look for sellers up at 8300 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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