NASDAQ futures were active overnight as investors prepared to head into a new month. Price spent most of the evening trading lower before finding a strong responsive bid right where we rallied off the Fed Rate Decision last Wednesday afternoon. Once the buyers were found price traversed the entire globex range. Heading into cash open price is sitting just below the MID from last Friday. This action occurred on normal volume and printed a slightly elevated range.
On the economic calendar today are two 10am events, the ISM Manufacturing reading and Construction Spending. The big economic event is scheduled for Friday premarket when we hear Nonfarm payroll. Keep in mind we also have Facebook earnings Wednesday.
Last week price churned sideways with a slight upward drift. Wednesday saw a strong rally after the FOMC rate decision. We ended the week probing down into the Fed rally.
Heading into today my primary expectation is for sellers to work down into the overnight inventory and close the gap down to 4646.50. Sellers push down though this area setting up a move to target overnight low 4625. From here look for sellers to continue probing lower to test below last Wednesday low 4600.50 before finding responsive buyers and two way trade ensues.
Hypo 2 is less volatile. Sellers struggle, but work the gap fill down to 4646.50 before responsive buyers step in (responsive relative to the open print, initiative relative to Friday close). Buyers make a move to target overnight high 4652.75 before finding responsive sellers at 4656 and two way trade ensues.
Hypo 3 buyers push up through 4656 and sustain trade above it, setting up a move to target 4668.75. Look for responsive sellers at 4672.75.
Levels:
Cover photo and headline are perfection
Thank you sir, and a good day to you. Trade’em well
Raul I have been meaning to shoot you a note to say thanks for the chats and notes you gave me at the conference, time well spent.