Looking at the overnight price action on NQ futures, after making a new high during the Asian session, price has been in retreat mode. Although the overnight inventory appears balanced, looks can be deceiving.
The first scenario I have shows price continuing to push down. Yesterday’s profile left a number of single print zones and my first thought is that we may see the market continue in the direction started during the overnight session.
The second possible scenario I see playing out is a renewed push up at the open back to settlement and from there a push up to the overnight high (which by the way is a poor high) to take that out and possibly extend the rally another day.
With a second day of testimony on Capitol Hill by Federal Reserve Chairman Jerome Powell scheduled, and some big names reporting earnings today, it is very possible this rally continues. Check out the Earnings Calendar for more details.
For my third scenario, I suspect what we may see is a strong push up out of the gate to take out that overnight high and then we may see the market attempt to repair yesterday’s profile before pushing back up to possibly close somewhere near unchanged.
Anything can really happen, truth is, no one actually knows. What these scenarios do is provide me with options for how I want to approach today’s market. Hopefully setting me up for the best opportunity for success.
That’s all I have for now, have a great trading day!