NASDAQ futures are coming into Monday gap up after an overnight session featuring normal range and volume. Price worked higher until about 4am, managing to make a new swing higher before settling into two-way trade.
The economic calendar today features NAHB Housing Market Index at 10am, and both the 3- and 6-month T-Bill auctions are taking place at 11:30am.
Last week opened hard gap down then trended higher all Monday. Then, while the other indices marked time, the NASDAQ continued to rally, fueled by the success of Apple and the failure of Samsung. Here is the performance of each major index last week:
Last Friday we printed a normal variation up, holding the upper quad of Thursday’s trend day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4813.75. Sellers continue lower, down through overnight low 4810.75. Buyers are found just below here and two way trade ensues.
Hypo 2 buyers show up around 4821 and work us up through overnight high 4841.75. Look for a move to target the measured level at 4867 before two way trade ensues.
Hypo 3 Liquidation triggers, price works down through 4810 and sets up a move to target 4800 before we balance out.
Levels:
Volume profiles, gaps, and measured moves:
So primary hypo morphed into hypo 3, which makes sense, targeting 4800 as a round number, and the POC from the previous multi day balance. As for the low at 4782.50, all I can see is that it lines up to a naked mid from last Thursday, interesting.