NASDAQ futures drove lower overnight on extreme range and volume. Price has been steadily campaigning lower since midnight, and as we approach cash open prices are flirting with last week’s lows.
On the economic calendar today we have crude oil inventories at 10:30am, a 20-year bond auction at 1pm and FOMC minutes at 2pm.
Yesterday we printed a neutral extreme down. The day began with a slight gap up near prior day highs. Sellers resolved the overnight gap during an open two way auction, then buyers worked higher and resolved the Friday gap. That led to an early range extension up before sellers knocked price down through the daily mid. Price walked over the mid a few times before sellers ultimately pressed an afternoon neutral print and accelerated their selling into the close, closing on the lows.
Heading into today my primary expectation is for sellers to gap-and-go down to 12,900.
Hypo 2 stronger sellers tag 12,818 before two way trade ensues.
Hypo 3 buyers work into the overnight inventory, tagging 13,100 before two way trade ensues.
Volume profiles, gaps and measured moves: