NASDAQ futures are coming into Monday gap down after an overnight session featuring normal range and volume. Price extended gains to a new swing high overnight before settling into balance trade above last Friday’s midpoint.
On the economic calendar today we have both a 3- and 6-month T-bill auction at 11:30am and a 2-year Note auction at 1pm.
Several vital earnings reports are scheduled for this week, earnings that are particularly infamous for rattling the NASDAQ market including Apple Tuesday AMC, Facebook Wednesday AMC, and both Amazon and Alphabet Thursday AMC.
We also have an FOMC rate decision on Wednesday afternoon. This is not considered to be a live event, in terms of potential for a change in rates, but there is still likely to be a significant market reaction post announcement.
Last week the NASDAQ drifted higher and turned out the best performance of all major indices:
On Friday we printed a double distribution trend up. The index briefly exceeded the weekly higher after a strong morning trend higher before settling into a tight range ahead of the weekend.
Heading into today my primary expectation is for buyers to work the market up through overnight high 4669.50. Look for buyers to continue higher, up to 4677 before settling into two-way trade.
Hypo 2 sellers work down through overnight low 4645.50. Look for buyers around 4640 and two way trade to ensue.
Hypo 3 strong sellers press down through 4640 and test below Friday’s low 4628.50. Look for a responsive bid down at 4624.50 and two way trade to ensue.
Hypo 4 strong buying pushes up through overnight high 4669.50 and sustains trade above 4677 setting up a move to target the open gap up at 4691 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
