NASDAQ futures are coming into Tuesday gap up beyond yesterday and last week’s highs after an overnight ession featuring extreme range and volume. Price was balanced overnight until about 8:30am New York. Whether or not CPI data came out at the top-end of expectations at that time led to the rally that followed is debatable. But since then we’ve rallied nearly to all-time highs.
Also on the economic calendar today we have a 30-year bond auction at 1pm.
Yesterday we printed a neutral extreme up. The session began with a gap down in range. Buyers poked higher during opening swing and filled the overnight gap before sellers stepped in. Said sellers eventually pushed us into an early range extension down which was met with strong responsive buying. Price then chopped along the top of the day’s midpoint for a few hours before rallying into a neutral print. Price checked back to the mid once more, than ramped into the close to end near the highs.
Heading into today my primary expectation is for a probe up beyond all-time high 13,863.75 and a tag of 13,900 before two way trade ensues.
Hypo 2 stronger buyers rally to 14,000 before two way trade ensues.
Hypo 3 sellers press into overnight inventory and reclaim Monday high 13,828.75 and sustain trade below it, setting up a move down through overnight low 13,772.75 before two way trade ensues.
Volume profiles, gaps and measured moves:
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