Nasdaq futures are priced to gap up into the holiday shortened week. The globex session went live at 6pm yesterday and from the onset price worked higher. Around 2:15am the rally accelerated and about 2 hours later price was around 60 points higher. Both range and volume and extreme 3rd sigma.
The economic calendar is quiet this week. Today we have Labor Market Conditions at 10am and Consumer Credit at 3pm. Both are relatively low impact events.
Friday we printed a big gap down neutral day. It was the 9th consecutive neutral day. Price worked lower off the gap down to close the open gap left behind on 9/1. From there buyers responded and by the end of the session price was trading near the high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and test down to 4233.25. From there look for responsive buyers to step in and work at targeting overnight high 4279.
Hypo 2 buyers gap and go but stall out at 4290 before rolling over and two way trade ensues north of 4155.
Hypo 3 aggressive gap and go trade higher, take out 4290 early and continue higher to target 4318.50.
Levels:
Raul – it’s probably superstition, but I’m always looking for these major holidays, and seeming inflection points. Decent start to the possibility of the inflection being ‘up’. Onward to Columbus Day….. I wonder if ol’ Chris be wearing the rose colored spectacles?
i can see my glory and my future.
With trousers on or off?