NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated range on elevated volume. Price worked higher overnight after being in balance until about 3am. As we approach cash open, price is hovering near last Friday’s high.
On the economic calendar today we have existing home sales at 10am followed by a two year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap up and push higher to tag the naked volume point of control from last Friday. Initiative buyers were then seen defending the 7900 century mark which set up a second rotation higher, closing the market near session high and overall printing an ‘inside day’ with price being contained inside of the prior session’s range.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through last Friday’s high 7974.25. Look for sellers up at 7983.75 and two way trade to ensue.
Hypo 2 stronger buyers rally up through 8000 and continue to explore all-time highs.
Hypo 3 sellers press into the overnight inventory and close the gap down to 7926.50 before continuing lower, down through overnight low 7921.25. Look for buyers just below at 7917.50 and two way trade to ensue.
Volume profiles, gaps, and measured moves: