NASDAQ futures are coming into Monday gap up after an overnight session featuring normal range and volume. The globex market opened gap up and balanced trade eventually gave way to higher prices. As we head into the open, price is probing above last Friday’s high.
There are no economic events today.
Last week the tape was flat and sideways. Despite the odd behavior in Forex markets, our major indices remained stable, essentially marking time after starting out with a gap down. Here is the performance of each major index last week:
On Friday the NASDAQ printed a normal variation down. An early selling drive lower found an area of balance around Thursday’s VPOC before a second, initiative wave of selling pushed in. This second wave found a strong responsive bid and pushed the market back to its midpoint to end the week.
Heading into today my primary expectation is for for sellers to work into the overnight inventory and close the overnight gap down to 4859.50. Look for responsive buyers down around 4855 and two way trade to ensue.
Hypo 2 buyers gap and go, pushing price up to 4902.25 before two way trade ensues.
Hypo 3 full on trend day up, up through 4902.25, up through 4915.50.
Hypo 4 some sort of liquidation, down to test 4845.
Levels:
Volume profiles, gaps, and measured moves:
