NASDAQ futures are coming into the holiday-shortened week with a slight gap up after an overnight session featuring normal range and volume. Price held Friday’s range in balanced trade.
On the economic calendar today we have ISM Non-manufacturing/services Composite at 10am. At 11:30am the Treasury is auctioning off 3- and 6-month T-Bill plus 4-week T-Bills.
Last week the major indices continued to balance, essentially marking time through sideways price action as we entered the new month. Below is the performance of each major index last week:
Last Friday the market opened gap up after change in Non-farm payroll grew less than expected. An early buying push was faded back down into value. Near the end of the day a strong bid stepped in.
Heading into today my primary expectation is for a small move to close the overnight gap down to 4794.75. Look for buyers down at 4790.50 who work up though overnight high 4806 to target the NVPOC at 4810 before two way trade ensues.
Hypo 2 sellers work down through overnight low 4782.25 to target the VPOC at 4774. Look for buyers down at 4770 and two way trade to ensue.
Hypo 3 strong sellers push down through 4770 and sustain trade below 4765. Look for buyers down at 4761.25.
Hypo 4 buyers push up to 4820 before we balance out, stretch targets are 4827.50 then 4830.
Levels:
Volume profiles, gaps, and measured moves:
