NASDAQ futures are coming into the first Tuesday in October with a slight gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the bottom-side of Monday’s midpoint. As we approach cash open price is hovering about -50 points below the Monday mid.
On the economic calendar today we have ism services index at 10am followed by 52-week T-bill auction at 11:30am.
Yesterday we printed a double distribution trend down. The day began with a slight gap down in range. Sellers drove into the open, steadily driving lower clean through to 11am New York, printing a -300 point liquidation along the way. Then we spent the rest of the session chopping along the lower quadrant.
Heading into today my primary expectation is for buyers to press up through overnight high 14,549.50 before two way trade ensues.
Hypo 2 stronger buyers reverse the Monday selling, filling the weekend gap up to 14,766.
Hypo 3 continued liquidation. Sellers take out overnight low 14,410 setting up a test down through Monday low 14,367.75. This sets up a gap fill down to 14,324 (the 06/24 open gap).
Volume profiles, gaps and measured moves:
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