Futures on the NASDAQ are coming into the week flat after a globex session featuring normal range and volume. Price worked lower for most of the session but managed to hold Friday’s range before turning up and into balance.
The economic calendar starts the week slow with only New Home Sales at 10am and Dallas Fed at 10:30am. As we progress through the week many more events are scheduled including an FOMC Rate Decision Wednesday afternoon.
Last week price traded sideways with a slight downward drift until opening gap up Thursday and trending higher through the day. After the bell Thursday we saw a surge to the upside fueled by earnings from Amazon, Alphabet, and Microsoft. Then Friday opened with a big gap up on news that China cut their borrowing rate by 25bps.
Friday printed a neutral day. After setting initial balance two attempts were made to explore lower prices. Each was met with strong responsive buys which eventually led to making a new session high before settling back into the mid to end the day. Price managed to briefly exceed the 7/22 high before turning lower.
Heading into today, my primary expectation is for sellers to working into the market and target the overnight low 4592.75 because the structure on the low looks weak. Look for responsive buyers at 4580 to set up balanced, two way trade. Otherwise continue lower to test 4564.50 before two way trade ensues.
Hypo 2 buyers press through the slightly short overnight inventory and close the gap up to 4611.75 then target the overnight high 4614. Buyer make a go at taking out Friday’s high 4637.50 but stall out ahead of it and two way trade ensues north of 4600.
Hypo 3 buyers are strong off early on, take out overnight high 4614 and sustain trade above 4620. From there look to take out Fridays high 4637.50 and run the gap fill up to the July 21st Apple earnings reaction up at 4668.25.
Levels:
hypo 2 so far, but we worked the 4600 level first