NASDAQ futures are coming into Tuesday with a slight gap down after an overnight session featuring elevated range on elevated volume. Price was balanced overnight, bobbing along the top-side of Monday’s midpoint. As we approach cash open, price is hovering just a few ticks below the Monday midpoint.
On the economic calendar today we have consumer confidence and new home sales at 10am followed by a 2-year note auction at 1pm.
Yesterday we printed a normal variation down. The day began with a gap up to new record highs. There was a pretty wide open-two way auction that pressed a few points higher before responsive sellers stepped in. Said sellers spent the morning closing the overnight gap but struggled to reclaim the Friday range. Instead buyers pressed back to the daily midpoint. Sellers defended the mid twice before attempting another rotation lower. This rotation stalled out before a new daily low could be made and we ramped back up through the midpoint near the end of the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 11,636. From here buyers continue higher, taking out overnight high 11,690. Look for sellers just above at 11,700 and two way trade to ensue.
Hypo 2 stronger buyers trade up to 11,733.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 11,607.75 setting up a move down to 11,574 before two way trade ensues.
Volume profiles, gaps and measured moves:
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