NASDAQ futures are set to open gap down after an overnight session featuring normal range and volume. Price began working lower around 5am after the European Union demanded a 13 billion euro (plus interest) payment from Apple, Inc. Sellers managed to take out Monday’s low before settling into two-way trade.
On the economic docket today we have the Case-Shiller US Home Price Index (year-over-year) at 9am, Consumer Confidence at 10am, and a 4-week T-Bill auction at 11:30am.
Yesterday we printed a normal variation up. Price drove higher off the open and found a sharp responsive seller. The seller was unable to become initiative so buyers pushed again, extending the IB before again finding a responsive seller and ultimately closing below the daily midpoint.
Heading into today my primary expectation is for a move down through overnight low 4780.50 that seeks to probe last Friday’s low 4757.25. Look for responsive buyers down at 4754.50 and two way trade to ensue.
Hypo 2 buyers to work into the overnight inventory and close the gap up to 4792.75. Buyers continue higher, up through overnight high 4798.50 before two way trade ensues.
Hypo 3 strong buyers push up through overnight high 4798.50 and continue working higher, up to 4817.50 before two way trade ensues. Stretch target is 4819.25.
Levels:
Volume profiles, gaps, and measured moves:
Truly impressive coverage. *tips hat*