NASDAQ futures are coming into the last Tuesday of April with a slight gap up after an overnight session featuring **normal** range and volume. Price worked sideways overnight, balancing along the Monday high. As we approach cash open, price is hovering along the Monday high and about 40 points below record highs.
Shares of AI and robotics company Tesla are -2% in premarket trade after reporting earnings Monday afternoon.
On the economic calendar today we have consumer confidence at 10am followed by a 2-year note auction at 11:30am then a 7-year note auction at 1pm.
Major NASDAQ components Microsoft and Alphabet (Google) are set to report earnings after the bell.
Yesterday we printed a normal variation up. The structure of the price action nearly resembles a double distribution trend up, but a closer look at the volume profile reveals only a single Gaussian structure. The day began with a slight gap up in range and after an open two-way auction in range buyer stepped in and began campaigning price higher. Price exceeded last Friday’s high early on, around 11am New York before flagging along these highs through lunch. After lunch buyers continued their campaign higher, eventually tagging 14,000 and going on to close the 04/16 open gap. The day ended chopping along the highs.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 14,050 on the way to probing beyond record high 14,059.75.
Hypo 2 stronger buyers trade up to 14,100 before two way trade ensues.
Hypo 3 sellers press down through overnight low 13,999 before two way trade ensues.
Basically, a pause as the market awaits new information.
Volume profiles, gaps and measured moves:
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