NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme volume on elevated range. Price was balanced overnight, slowly working higher, before spiking up on the 8:30am economic data, the often immaterial consumer price index.
The other economic events today are a 4-week T-bill auction at 11:30am and a 30-year bond auction at 1pm.
Yesterday we printed a neutral day. We came into the week gap up and after a 2-way auction sellers attempted to close the gap. Their efforts failed ahead of last Friday’s range and we traversed the entire daily range, pushing us neutral. Then two-way trade ensued, along the daily midpoint.
Heading into today my primary expectation is for a gap-and-go up, through overnight high 7202.50 to tag the measured move target at 7241.75 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 7160.25 then continue lower, down through overnight low 7151.25 before two way trade ensues.
Hypo 3 stronger buyers sustain trade above 7241.75 triggering a trend up. Open air.
Volume profiles, gaps, and measured moves: