Futures over at the NASDAQ electronic exchange are pricing a gap down to start the first week of October after an overnight session featuring normal range and volume. Price held last Friday’s range overnight on balanced trade that worked slightly lower.
On the economic docket today we have Construction Spending and ISM Manufacturing at 10am, also a 3- and 6-month T-bill auction at 11:30am.
Last week also kicked off with a gap down–a slightly larger one. Then Monday was spent in a tight range. Tuesday worked higher to close the weekly gap, and when price attempted to break Monday’s low on Thursday, strong responsive buyers were on the scene defending ahead of the lows. Friday saw price push up before a fast sell at the end of the day.
The performance of each major index last week can is below:
Last Friday we printed a normal variation up which featured an air pocket formation. This volume profile void formed because price discovery up was taking place.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4865.75. From here look for a move to take overnight high 4879.50 and close the gap up at 4886.50 before two way trade ensues.
Hypo 2 sellers push down to target the MCVPOC at 4837 before two way trade ensues.
Hypo 3 strong sellers work down to testing the low end of value–4830.75 then 4823 before two way trade ensues.
Hypo 4 strong buyers close overnight gap 4865.75, close gap up at 4886.50, then sustain trade above 4888 setting up a move to target 4900.
Levels:
Volume profiles, gaps, and measured moves:
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