NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing in the lower half of Monday’s range. As we approach cash open, price is hovering near the Monday low.
On the economic calendar today we have JOLTS jobs openings at 10am followed by a 10-year note auction at 1pm.
Yesterday we printed a neutral extreme down. The day began with a gap down in range. Sellers drove down into the opening print, taking out the Friday low and nearly tagging the naked VPOC from Thursday before catching a strong responsive bid about 15-minutes into the session. Buyers then campaigned higher, making an early range extension up before price fell back to the midpoint. Buyers defended the first test of the mid and made a new high on the day but buyers could not close the overnight gap. Instead the auction stalled and reversed before it could tag the Friday VPOC. The second check back to the midpoint saw sellers overrun it and late in the afternoon we pressed into a neutral print. Price worked a bit off the lows but still ended the day in the lower quadrant.
Heading into today my primary expectation is for buyers to press up through overnight high 12,959. Look for sellers up at 13,000 and for two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 12,914.75 before continuing lower, down through overnight low 12,886.25. Look for buyers down at 12,866.50 and for two way trade to ensue.
Hypo 3 stronger sellers trade down to 12,800 before two way trade ensues.
Volume profiles, gaps and measured moves:
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