Nasdaq futures are up a bit as we head into the cash open. The overnight session was on the low end of normal range and volume in a balanced session of trade. 8:30am we head Personal Income/Spending stats, we have 9:45am Markit Manufacturing PMI, and 10am Construction spending and ISM Manufacturing. XOM is trading flat after reporting earnings trhis morning.
Friday the Nasdaq gave back about half of the rally it had Thursday from oversold conditions to settle right at the MCVPOC of our large intermediate term balance dating back to the end of October. The market is trying to explore lower prices on the short term and is did an okay job of it last week with a gap lower and so far a lower high.
Early on, my primary expectation is for sellers to come in and work the overnight inventory toward a gap fill down to 4144.75. After some two way action we continue lower to target the overnight low 4129.25 and then the NVPOC at 4121.25.
Hypo 2 is buyers push off the open and work higher to 4173.50 and then stretch to 4181.25 where we find responsive selling back toward the gap fill 4144.75.
Hypo 3 is a early drive higher above 4181.25 and continue higher to test Friday’s high 4203.25.
There levels are highlighted on the following volume profile and market profile charts:
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