NASDAQ futures are coming into the week gap up after an overnight session featuring normal range and volume. Balanced price action gave way to upward movement after a strong buyer stepped in around 4:30am. The buyers stalled out just ahead of 4350–about at the upper quadrant from last Tuesday’s session.
The economic calendar is slow all week. We have already heard earnings from most major companies. Today we have Labor Market Conditions index at 10am, also a 3- & 6-month T-Bill auction at 11:30am.
Last week we kicked off the month of May will a bull trap. Price went trend up Monday only to gap down and hold lower Tuesday. The rest of the week price walked lower, no real volatility, and this continued until late-Friday afternoon when a strong bid pushed into the marketplace.
Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 4328.50. Sellers continue working lower, down to 4322 but fail to take out overnight low. Instead price works higher to take out overnight high 4347 before two way trade ensues.
Hypo 2 buyers gap-and-go higher, take out overnight high early on 4347 then sustain trade above 4350 setting up a test above last Tuesday’s session high 4360.50. This triggers a chase and price works higher, up to close last Monday’s gap at 4369.50. Look for responsive sellers up at 4372 and two way trade to ensue.
Hypo 3 sellers close overnight gap down to 4326.50 then take out overnight low 4318. Sellers slide down through the air pocket formed during last Friday’s afternoon rally and price tests 4304.75 before two way trade ensues.
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Levels:
Volume profiles, gaps, and measured moves
interesting action today 😀