NASDAQ futures are coming into the week pro gap up after an overnight session featuring normal range and volume. The Globex session opened gap up and went into a slow up trend. Price is already beyond the week’s upside measured move target, currently priced near last Thursday’s high.
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On the economic docket today we have 3- and 6-month T-Bill auctions happening at 11:30am and a 2-year note auction at 1pm.
Last week the NASDAQ worked lower. There was a flash of upside after the FOMC rate decision that was ultimately faded. The NASDAQ was the weakest index, however, while the other major indices saw bullish divergences into the end of the week.
Friday the NASDAQ opened gap down and sellers drove lower off the open. A small rally took hold through lunch but was ultimately faded to end the week.
Heading into today my primary expectation is for sellers to push into the overnight inventory a bit. Look for a move down to test the 4400 century mark. Look for responsive buyers (responsive relative to the open, initiative relative to last week’s close) to step in at these prices and work us up through overnight high 4420.50. Look for sellers up at 4424 and two way trade to ensue.
Hypo 2 buyers gap-and-go. Push up through 4424 early on setting up a move to target 4442.50. Additional upside targets are 4450 then a stretch target of the open gap at 4458.50.
Hypo 3 full gap fill lower. First sellers have to take out overnight low 4382.75. Look for buyers to defend down at 4375.25 but ultimately they are overrun as the market continues lower to target gap fill down to 4359.
Look for the bond auctions around 11:30am to sort out any debates occurring at-or-near a major price level and to set the tone for the remainder of the day.
Levels:
Volume profiles, gaps, and measures moves:
