As we head into another month end trade, the Nasdaq is starting off the shortened holiday week in the green. The overnight session was mostly balanced. A wave of selling came through around 6am which found responsive buyers lurking below. The Canadians released weaker than expected GDP stats at 8:30am this morning and the news thus far has not triggered a response from the US equity futures. Notable economic data on deck today includes US Pending Home Sales and 10am, Dallas Fed Survey at 10:30am, and Fed’s Williams speaking at 1:10pm.
We closed out last week with a rally, and with prices at fresh swing highs. Looking at a long term chart you can see the buyers are in control as price advertises higher in an attempt to entice sellers into the exchange:
On the intermediate term we can see an important low volume node formed just before the breakout, 3823.75 is on watch early on this week:
Bringing our attention closer to the action, the market profile shows value on the rise with Friady printing a normal variation day with buyers extending the range higher and also pressing value higher. The price zone from 3830 – 3826 is fast and we may traverse it a few times today, especially if the market begins to balance out. I am particularly keen on the low volume node which appears here on the market profile as well as the composite, right at 3823.75. This level is my in play action level of the day. I have highlighted this level and a few more observations on the following market profile chart:
Hypo 1 – fill overnight gap to 3832.25 then probe higher to Fri High 3837.75 and MM target 3839.50
Hypo 2 – test higher to 3836.50 find responsive selling back to gap fill 3832.25 then down through fast zone 3830 – 3826 where we find responsive buying and balance out in fast zone
hypo 3 – drive lower through fast zone to test LVN at 3823.75, find responsive buying and balance out
hypo 4 – take out LVN at 3823.75 and sellers target 3809