NASDAQ futures are coming into Tuesday gap down after an overnight session featuring elevated volume on extreme range. Price was slowly working higher for most of Globex, and even took out the Monday high by a few ticks around 6am New York before tumbling lower. Since then, price has slashed down through the Monday midpoint and as we approach cash open, price is hovering below the mid.
On the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 3-year note auction at 1pm.
Yesterday we printed a normal variation down. The da began with a slight gap up that was resloved during an open two-way auction before sellers stepped in and drove lower. Said sellers took out last week’s low and nearly tagged the weekly lower ATR band before discovering a sharp responsive bid. We ended the day back above the midpoint, chopping along its topside.
Heading into today my primary expectation is for buyers to press into the overnight inventory and close the gap up to 11,069. From here they continue higher, tagging 11,100 before two way trade ensues.
Hypo 2 stronger buyers work up through overnight high 11,157.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 10,986.50 and tag 10,972.50 before two way trade ensues.
Volume profiles, gaps and measured moves: