NASDAQ futures are coming into Tuesday pro gap up after an overnight session featuring extreme range and volume. Price steadily rotated higher overnight, taking out the Monday high print around 10pm New York and continuing to probe higher until about 7am. Responsive sellers showed up around 12,250 and as we approach cash open, price is hovering around 12,000.
On the economic calendar today we have ISM Manufacturing index and construction spending at 10am.
Yesterday we printed a double distribution trend up. The day began with a gap up right around the Friday high. Sellers nearly closed the gap during an open two-way auction but did not entirely close it before buyers stepped in and began campaigning for higher prices. By 10:30am we were already range extension up. Sellers made a sharp move back to the daily midpoint shortly after range extension. Buyers defended the mid setting up another steady rotation higher for the rest of the session. During the closing trade sellers pressed price back down to the midpoint but the daily VPOC stayed up near the highs.
Heading into today my primary expectation is for a sell move down to 12,147.50. Buyers step in here and take out overnight high 12,248.75. Look for sellers ahead of 12,300 and two way trade to ensue.
Hypo 2 stronger sellers work a full gap fill down to 12,112.25 before two way trade ensues.
Hypo 3 buyers gap-and-go higher, sustaining trade above 12,300 to set up a run for 12,350.
Volume profiles, gaps and measured moves: