NASDAQ futures are coming into Monday gap down after an overnight session featuring elevated range on normal volume. Price worked up beyond the area defended by sellers last Thursday before selling off. Since then price has held above the Friday midpoint.
The economic calendar is light this week. Today the only scheduled events come at 11:30am when the US Treasury auctions off both 3- and 6-month T-bills.
Last week was extremely active, starting out with a big gap up and two day rally before the US elections. Voting results may have triggered a massive sell-off Tuesday evening, but price managed to regain most of the losses before the open of trade Wednesday. Then, for the rest of the week all indices except the NASDAQ rallied. The NASDAQ sold off Thursday and came into balance Friday.
Here are the performances of each major index last week:
Heading into today my primary expectation is for sellers to take out overnight low 4733.50 and test below last Friday’s low 4706. Look for responsive buyers down at 4700 and two way trade to ensue.
Hypo 2 buyers work the overnight gap fill up to 4749.25 and up to 4765.50 before two way trade ensues.
Hypo 3 strong buyers work gap fill up to 4749.25 then take out overnight high 4784.50 triggering a short squeeze up to 4807.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
