NASDAQ futures are coming into the first Tuesday in May pro gap down after an overnight session featuring extreme range on elevated volume. Price was balancing overnight, balancing below the Monday low for much of the globex session until sellers hit the tape around 7:40am New York. Said sellers sent price about -75 handles lower in about two minutes. Since then we’ve come into a mini balance, and as we approach cash open price is hovering at levels unseen since April 9th.
On the economic calendar today we have factory orders at 10am.
Yesterday we printed a double distribution trend down. THe dawy began with a gap up in range that sellers quickly drove into off the open, filling the gap before a responsive bid stepped in and chopped price higher. This chop up was complete before the first hour of cash markets was complete, and was followed by a second wave of selling that pushed to an early range extension down while taking out last week’s lows. The rest of the session was spent chopping along these lows, ultimately shifting the daily VPOC down near the lows.
Heading into today my primary expectation is for a small sell down to close the April 7th gap down at 13,618.75 before two way trade ensues.
Hypo 2 gap-and-go lower, liquidation down to 13,558.50 before two way trade ensues.
Hypo 3 buyers work into the overnight inventory and attempt to reclaim Monday low 13,772 but fail and two way chop ensues along the Monday low.
Volume profiles, gaps and measured moves:
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