NASDAQ futures are coming into Tuesday, the first trading day of the week, gap up after an overnight session featuring normal range on abnormally low volume. Price worked higher overnight, trading up beyond last Friday’s high and settling up near the Thursday high as we approach opening bell.
Last week began with a strong driver higher Monday which was rebutted by the afternoon when sellers stepped in. The rest of the week was spent drifting sideways with a slight downward slip. Here is the performance of each major index last week:
The economic calendar is light this week. We have a reading of the Consumer Confidence at 10am.
Last Friday the NASDAQ formed a neutral extreme up. The gap down was bought up but sellers pushed a range extension down by lunchtime. However, buyers worked price back up through the entire range before end of day, closing near the session high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4942.50. From here we continue lower, down through overnight low 4940 before it becomes choppy two-way trade.
Hypo 2 strong sellers press down to value area low around 4920 before two way trade ensues.
Hypo 3 buyers press up through overnight high 4950.50 and begin probing up to new highs, taking out 4966.25 to target 4970 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
