NASDAQ futures are coming into Tuesday pro gap up after an overnight session featuring extreme rang and volume. Price briefly worked lower overnight, trading just a few ticks below the Monday low around 6pm New York before forming a failed auction and reversing higher. Around 7pm price spiked back to the Monday midpoint, and by 2am price was up beyond the Monday high. Price went as high as testing into the lower quadrant of last Friday’s range before finding sellers who rejected a move into the range. As we approach cash open, price is hovering along Monday’s high.
On the economic calendar today we have a 3-year Note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a pro gap down and selling drive lower. The selling managed to close an old gap left behind on October 23rd of last year and halt the market for 15 minutes before a sharp responsive bid stepped in and we formed an excess low. The rest of the morning was spent rallying back up to the weekly ATR band. Sellers were here (the band also aligned with recent swing lows) and the afternoon was spent giving back most of the morning gains. We ended the day below the midpoint.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 8346 to tag the 8400 century mark. Look for sellers up at 8481 and two way trade to ensue.
Hypo 2 stronger buyers close last Friday’s gap up at 8506.50 gap before two way trade ensues.
Hypo 3 sellers work into the overnight inventory and close the gap down to 7951.75 setting up a move to take out overnight low 7814.25. Look for buyers down at 7761.25 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
