NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, trading up through the Monday high. At 8:30am GDP data came out slightly better than expected. As we approach cash open price is hovering near record highs.
Also on the economic calendar today we have consumer confidence and existing home sales at 10am followed by a 5-year TIPS auction at 1pm.
Yesterday we printed a neutral extreme up. The day began with a gap down below the prior Friday’s range. Sellers stepped in and drove lower after a spike higher at the open. Sellers worked down through overnight low by a few ticks before a strong responsive bid stepped and and drove price back up through the daily midpoint. (Failed auction lower). Then buyers continued higher, eventually pressing into a neutral print and closing along the daily high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 12,689.25 before two way trade ensues.
Hypo 2 gap-and-go higher, trading up through overnight high 12,760 on the way to tagging 12,800.
Hypo 3 stronger buyers sustain trade above 12,800 early on, setting up a run to 12,900.
Volume profiles, gaps and measured moves:
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