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 half of Monday’s range until about 2am New York when price began a campaign higher, trading up into the upper quadrant of the February 20th range, a range price has struggled to regain many times. Globex also marked a new swing high, ticking up beyond the last one printed on May 26th. As we approach cash open, price is hovering up beyond Monday’s range.
On the economic calendar today we have 42- and 119-day T-bill auctions at 11:30am.
Yesterday we printed a normal variation up. The day began with a gap down in range. Buyers quickly resolved the open gap after a brief open two-way auction. Then, after taking out last Friday’s high by a few ticks we settled into a really mellow balance, eventually kissing the daily midpoint a few times from the topside before extending the day’s gains a bit. We flagged along the highs into the close.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 9670 on their way to tagging 9700.
Hypo 2 stronger buyers rally to new all-time highs, probing beyond current high 9748.75. Look for sellers up at 9784 and two way trade to ensue.
Hypo 3 sellers press into the overnight inventory and close the gap down to 9596.50. Look for buyers down at 9550 and two way trade to ensue.
Levels:
Volume profiles, gaps and measured moves:
