NASDAQ futures are coming into the second Tuesday of May pro gap down after an overnight session featuring extreme range and volume. Price drove lower around 8pm New York then balanced until about 7:30am before resuming the selling. As we approach cash open, price is hovering around 13,100, a handle we haven’t traded since March 31st.
On the economic calendar today we have JOLTS jobs openings at 10am followed by a 3-year note auction at 1pm.
Yesterday we printed a trend down. The day began with a gap down below the Friday low and a drive lower. Said drive created an early range extension down and effectively tagged last Thursday’s naked volume point of control. There was a small bounce here before sellers resumed their campaign, with selling that steadily worked price down through last week’s lows. We ended on the lows.
Heading into today my primary expectation is for a gap-and-go lower down to 13,000.
Hypo 2 buyers work a half gap fill up to 13,189 before two way trade ensues.
Hypo 3 stronger buyers work a full gap fill up to 13,342.
Volume profiles, gaps and measured moves:
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