NASDAQ futures are coming into Tuesday with a slight gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing along the top-side of Monday’s midpoint. At 8:30am retail sales data came out on the high end of expected range. As we approach cash open price is hovering just above the Monday midpoint.
Home Depot and Walmart reported earnings before the bell Tuesday, shares are +2% and -0.7% respectively in pre-market trade.
Also on the economic calendar today we have industrial production at 9:15am followed by business inventories and housing market index at 10am.
Yesterday we printed a normal variation down. The day began with a gap up beyond Friday range. After an open auction outside range sellers stepped in adn drove down through the open gap, continuing down to the Friday midpoint. Sellers made two attempts to take the Friday mid and failed on the second, effectively reversing the auction. Buyers pressed up through the mid late in the day and we closed out the first day of the week rising off the mid.
Heading into today my primary expectation is for buyers to close the gap up to 16,197 and tag 16,200 before two way trade ensues.
Hypo 2 sellers trade down to 16,100 before two way trade ensues.
Hypo 3 stronger sellers trade down to 16,041.50 before two way trade ensues.
Volume profiles, gaps and measured moves:
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