NASDAQ futures are coming into the first Tuesday in December pro gap up after an overnight session featuring extreme range and volume. Price shot higher overnight starting around midnight New York and continuing to rally until about 4:30am. Said rally sent price back up into last Wednesday (12/1) range, and as we approach cash open price is holding a tight balance above that day’s midpoint.
On the economic calendar today we have a 3-year note auction at 1pm followed by consumer credit at 3pm.
Yesterday we printed a double distribution trend up. The day began with a slight gap up in range. Sellers resolved the gap with an early drive lower that also managed to tag the Friday volume point of control but failed to take out the Friday low. Instead a sharp responsive buy hit the tape and after a battle along the mid sellers made an attempt lower but failed again. This triggered a strong move higher before 10:30am. Then we fell back to the midpoint. Buyers held the mid twice setting up a run at range extension up. This move held and we chopped along the high into the close.
Heading into today my primary expectation is for buyers to gap and go higher, tagging 16,200 before two way trade ensues.
Hypo 2 stronger buyers tag 16,316.75.
Hypo 3 sellers work a gap fill down to 15,832.75.
Volume profiles, gaps and measured moves:
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