NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, uni-directionally rotating up to a new all-time high. At 8:30am Housing starts/building permits data came out mixed. As we approach cash open, price is hovering at all-time highs.
There are no other major economic events today.
Yesterday we printed a normal variation up. The day began with a slight gap down and drive lower. The selling pushed into the Thursday gap zone but sellers were unable to fill it. Instead responsive buyers stepped in and we spent the rest of the session auctioning higher. We ended the day in the upper quadrant.
Heading into today my primary expectation is for a gap-and-go higher, up through overnight high 8379 to tag 8381.50 before two way trade ensues.
Hypo 2 stronger buyers sustain trade above 8381.50 setting up a run to 8400.
Hypo 3 sellers press into the overnight inventory and close the gap down to 8333.25. From here they continue lower, down through overnight low 8317.25. Look for buyers down at 8300 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
