NASDAQ futures are coming into the first trading day of 2017 gap up after an overnight session featuring normal range and volume. When the contracts opened for trade Monday evening they were gap up, and price continued pressing higher, effectively erasing much of the Friday losses before settling into two-way trade.
On the economic docket today we have Construction Spending and ISM Manufacturing at 10am. At 11:30am the US Treasury is auctioning 4-week, 3-month, 6-month, and 52-week Bills. Price is likely to find direction after these T-bills are auctioned off.
Last week was shortened by the observation of Christmas Day on Monday. US markets rallied early Tuesday, but reversed by end of day. The selling continued for the rest of the week. Below is the performance of each major index last week:
On Friday the NASDAQ printed a double distribution trend down. After opening gap up there was a strong morning drive lower. Prices continued lower throughout most of the day, working just a few ticks below the 12/12 low before finding a bid and settling into two-way trade.
Heading into today my primary expectation is for sellers to work into the overnight inventory and take out overnight low 4875.50. Look for buyers down at 4769.50 and two way trade to ensue.
Hypo 2 work higher off the open, up through overnight high 4908 to target 4911.50 before two way trade ensues.
Hypo 3 high pressure short squeeze up through 4911.50 to target 4933 before two way trade ensues.
Hypo 4 strong sellers press a full gap fill down to 4865.25 then probe below the Friday low 4850. Look for buyers down at 4844.75 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
spot on sir