NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price was balanced overnight until about 9:30pm New York when a strong bid entered the market. Said buying to price to a new record high before coming into balance again for the duration of Globex. As we approach cash open, price is hovering in the middle of this mini-balance.
On the economic calendar today we have existing home sales at 10am.
Yesterday was the first trading day of the week and we printed a normal variation up. The day began with a gap down, with price beginning the holiday-shortened week at last Friday’s midpoint and volume point of control. Buyers stepped in early on and worked price higher, closing the overnight gap then continuing a few points beyond the Friday high before falling back to the daily mid in the afternoon. Sellers were asserting themselves into the close as we ended the session in a choppy manner, along the mid.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up to 9266 before two way trade ensues.
Hypo 2 sellers work into overnight inventory, breaking down and out of the mini balance low (around 9211) setting up a gap fill down to 9169.75. From here we continue lower, down through overnight low 9165.50. Look for buyers down at 9142.25 and two way trade to ensue.
Hypo 3 stronger buyers trade up to 9300 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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