NASDAQ futures are coming into the final Tuesday of September down a quick -225 after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the Monday midpoint until about 2:45am New York when sellers stepped in and began a steady selling campaign that saw price down into last Monday’s lower quadrant. As we approach cash open price is hovering just below last Tuesday’s low, near last Monday’s midpoint.
On the economic calendar today we have international trade in goods (advance) at 8:30am followed by consumer confidence at 10am and a 7-year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap down just below last Friday’s low. Sellers rejected an attempt back into Friday range during an open-two-way auction setting up a fast move lower to tag the 15,00 century mark. The auction turned here, and we spent the rest of the morning campaigning higher, eventually pushing to a range extension up before New York lunch. Then price fell back to the mid, sort of walked all over it for a few hours before rallying into the close, effectively tagging the Friday naked volume point of control. Price faded off the highs into the close.
Heading into today my primary expectation is for buyers to work into the overnight inventory and tag 15,100. Some battle here before buyers continue higher to close the overnight gap 15,185.50. Look for sellers up at 15,200 and for two way trade to ensue.
Hypo 2 sellers gap-and-go lower, trading down to 14,900 before two way trade ensues.
Hypo 3 stronger seller press down through last week’s low print 14,807 triggering a liquidation down to 14,705.
Levels:
Volume profiles, gaps and measured moves:
