NASDAQ futures are priced to gap up into the week after an overnight session featuring normal range and volume. Price initially worked lower but held the Friday session low before a strong push higher around the Europe open. Heading into cash open price is trading near the high mark set during thin Thanksgiving day trade.
The only economic event of note today is Pending Home Sales at 10am.
Last week price started flat, a small rally rolled over and we saw Monday weakness bleed into Tuesday morning after reports of a Russian military jet being shot down. Price rebounded by the end of the week and overall we essentially traded flat.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4685.75 before responsive buyers (responsive relative to the open, initiative relative to Friday close) step in and work to take out overnight high 4700.50. Look for a test above 11/23 high 4706.75 before two way trade ensues.
Hypo 2 buyers make a gap and go drive higher, take out 4706.75 early and sustain trade above it, setting up a run for test above contract high 4729.50. Look for responsive sellers up near 4735.50 and two way trade ensues.
Hypo 3 sellers push the gap fill down to 4685.75 then set their sights on 4675.50 VPOC. Look for responsive buyers near 4672.50.
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