NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price was balanced overnight, balancing along the lower half of Monday’s range. As we approach cash open, price is hovering about 10 points below the Monday mid.
On the economic calendar today we have a 3-year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a slight gap up and open drive higher. Buyers drove to a record high, flagged for a bit, then pressed to range extension up, pressing about 12 points beyond the 12,600 century mark before discovering a responsive offer. Said sellers rotated price back down to the midpoint and briefly down through it. Sellers could not however defend the mid and we ended the day with a little ramp up off the mid and back into the upper quadrant to end the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 12,593. From there buyers continue higher, up beyond overnight high 12,602.75 before two way trade ensues.
Hypo 2 stronger buyers trade up to 12,656.75 before two way trade ensues.
Hypo 3 sellers press a gap-and-go lower, trading down through overnight low 12,527.50. Look for buyers down at 12,509.50 and for two way trade to ensue.
Levels:
Volume profiles, gaps and measured moves:
