NASDAQ futures are coming into Tuesday gap down after an overnight session featuring extreme range and volume. Price was balanced for most of the overnight session, balancing along the high print set Monday. Price nearly took out the Friday the 13th high print before falling back down into balance, and as we approach cash open, price is hovering just above the Tuesday midpoint.
On the economic calendar today we have Chicago purchasing manager at 9:45am followed by consumer confidence at 10am.
Yesterday we printed a double distribution trend up. The day began with a gap up in range, with price opening just above last Friday’s VPOC. After a tight two-way auction price began working higher, trading up beyond the Friday high before lunchtime. The better part of the afternoon was spent chopping up above last Friday’s high, with buyers actively rejecting several attempts back down into the Friday range. This eventually resolved as a grind higher into closing bell, taking us up near last week’s high (but not exceeding it).
Heading into today my primary expectation is for us to balance out. Look for sellers to press into the opening bell, trading down through overnight low 7764.25. Look for buyers down in the 7700 range, down to 7669.25 and two way trade to ensue, chopping between 7700 and 7900.
Hypo 2 buyers work into the overnight inventory and close the gap up to 7856. Buyers then continue higher, up through overnight high 7957 setting up a run to 8000 before two way trade ensues.
Hypo 3 stronger sellers close the gap left behind last Friday down at 7572.25. Look for buyers down at 7512.50 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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