The week is kicking off with a gap down on the NASDAQ exchange after a normal session of trade. Price managed to hold the upper half of Friday’s range before heading higher and briefly exceeding the prior swing high, set back on September 17th.
The economic calendar is quiet all week as earnings season heats up. The only economic data point out today is NAHB Housing Market Index at 10m.
Last week we set balance from Monday-to-Wednesday then closed out the week exploring higher prices. Friday we printed a neutral extreme up day after exceeding both side of the initial balance and traversing the entire range three times.
Heading into today my primary expectation is for buyers to push into the overnight inventory and close the weekend gap up to 4434.25, from there look for buyers to continue higher to target the overnight high 4444. This is where it becomes interesting because there is no real resistance until 4467.50. However, my primary expectation is for buyers to stall out just beyond overnight high and two-way trade ensues.
Hypo 2 sellers take out overnight low 4418.50 and set their sights on 4411.50. Look for responsive buyers around 4408.25 and two way trade ensues, perhaps closing the gap up to 4434.25.
Hypo 3 buyers accelerate up through overnight high 4444 and make a push up to 4467.50 before finding responsive sellers and two way trade.
Hypo 4 sellers take out 4407 and test below Friday’s low 4396. Look for responsive buyers around 4390.
Levels:
seeing the responsive sellers above overnight high step in, per the primary hypo