NASDAQ futures are coming into Wednesday with a gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing along the lower quadrant of Tuesday’s range after briefly probing below it around 1am New York. As we approach cash open price is slightly above the Tuesday close.
On the economic calendar today we have crude oil inventories at 10:30am followed by a 20-year bond auction at 1pm.
Yesterday we printed a double distribution trend down. The day began with a slight gap down in range that buyers quickly resolved shortly after ht open. Said early buyers managed to probe a bit beyond the Monday midpoint before the auction stalled out and reversed. Sellers pushed an early range extension down and swiftly pressed down through Monday low. The sellers managed to work price down to levels unseen since two Fridays back before noon, and then we spent the rest of the session chopping along the lower half of the day’s range.
Heading into today my primary expectation is for the sell discovery continues, tagging 13,687 before two way trade ensues.
Hypo 2 buyers to press higher, trading up through overnight high 13,788.50 on the way to tagging 13,800.
Hypo 3 stronger buyers tag 13,836.75 before two way trade ensues.
Volume profiles, gaps and measured moves:
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