NASDAQ futures are coming into Tuesday pro gap up after an overnight session featuring extreme range and volume. Price drove higher unidirectional overnight, continuing a buying campaign that began about an hour before New York lunch on Monday. As we approach cash open, price is hovering inside of the 03/06 range.
On the economic calendar today we have Federal Reserve banker Bullard set to talk about COVID-19 via a Zoom meeting at 11:05am.
Yesterday we printed a neutral extreme up. We kicked off the week with a slight gap down. Buyers resolved the gap during an open two-way auction then we formed a tight chop, chopping along and eventually going range extension down in the late morning but never taking out overnight low. Instead the auction reversed, slashing through the midpoint and then using it as a support pivot to push neutral. We rallied right up to the 03/10 open gap and closed near high of day here.
Neutral extreme up.
Heading into today my primary expectation is for a gap-and-go higher. Buyers tag 8500 and two way chop ensues.
Hypo 2 stronger buyers sustain trade above 8500 setting up a run to tag 8567.75 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and tag 8400 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
