We’re kicking off the week pro gap down after the Nasdaq spent most of the globex session trending lower. Range and volume running hot and as we head into cash open price are hovering inside the 7/16 range.
At 8:30am Durable Goods Orders data came out better-than-expected and the reaction so far has been muted. Overall we have stabilized slightly over the last hour. Coming up today we have Dallas Fed Manufacturing Activity but an otherwise empty economic docket. Keep in mind however Wednesday’s FOMC rate decision which is likely to be a high impact event. We are still pushing through earnings season too, but no major Nasdaq components are set to report today.
Last week we started strong only to end weak after Apple earnings disappointed investors Tuesday afternoon. Afterwards we went gap down Wednesday and churned around before ultimately trending lower Friday.
The overnight action pushed us down to close a 2nd of the 5 gaps left behind during our most recent rally. The Nasdaq has been methodical about closing open gaps. With three remaining to the downside and now 2 open gaps to the upside, it’s hard to have strong directional conviction.
Heading into today my primary expectation is for sellers to push right off the opening bell to target 4512.25. From there I’ll look for responsive buyers who work into the overnight inventory. Look for a half gap fill up to around 4543 then 2-way trade to ensue.
Hypo 2 gap and go lower. Push down through 4510 to target the 4500 century mark.
Hypo 3 open rejection reversal where buyers immediately step in and push aggressively higher, up through 4543 to set up a full gap fill up to 4563.75.
Levels:
