NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along the upper quadrant of Monday’s range. Buyers briefly exceeded the Monday high around 3:30am before traders demonstrated dissatisfaction with the G7 finance minister’s decision to hold off on any fiscal easing today in the wake of coronavirus fears. Their verbiage was dovish, but no action taken. This was met with price slipping back to the Globex session’s midpoint.
There are no other economic events today. Today is Super Tuesday and we can expect some political noise throughout the day.
Yesterday the NASDAQ printed a double distribution trend up. The day began with a slight gap up that sellers were able to resolve during an opening two-way auction. Said sellers were rejected away from the Friday range early on. We formed IB low around 10:30am New York and then worked higher, trading up through last Thursday’s midpoint, right up the the weekly ATR band. Price formed a double top here, then retraced back to the midpoint before a second wave of buying rolled in, taking us to a new high of day and right back to the price level we were at when news of the U.S. airstrike on Iran hit the wires several weeks ago. Some of that late afternoon buying was given back during settlement but the day ended in the upper quadrant of range.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 8917.50. Look for sellers up at 8948.25 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 8785.25 then continue lower, down through overnight low 8738.50. Look for buyers down at 8700 and two way trade to ensue.
Hypo 3 stronger buyers sustain trade above 8948.25 setting up a move to 9000.
Levels:
Volume profiles, gaps, and measured moves:
