NASDAQ futures are coming into Tuesday with a slight gap down after an overnight session featuring elevated range on normal volume. Price worked higher and achieved a new record high before slipping lower. Sellers were ultimately denied a chance to break down through last Friday’s low before a bid came in.
US Markets were closed Monday in observation of Memorial Day.
Economic data out early this morning was much stronger than expected. Personal Consumption Expenditures was out at 8:30am and the Case-Shiller Composite-20 at 9am. Both solid beats. The economy is running hot and consumption is faster than the world’s best analysts expected.
Also on the economic agenda today we have Consumer Confidence at 10am. Will it affirm the pre-market data, and be used to justify 3 rate hikes in 2017? Then, stay sharp, because at 11:30am the US Treasury is having a blow-out sale of short-term debt. All the auctions are listed below:
- 4-week, $45B
- 3-month, $39B
- 6-month, $33B
- cash management bills, $25B
Last week we rallied. The move was primaraly driven by large growth plays in the technology sector. Towards the end of the week, the Russell 2000 and Dow Jones Industrial Average began to lag. The performance last week of each major US index can be seen below:
On Friday, The NASDAQ printed a normal variation up. A bid appeared soon after the open and closed the small overnight gap. Then, after a brief range extension in the morning two-way trade ensued. Price did not take out the Thursday high, instead printing an ‘inside day’.
Heading into today my primary expectation is for sellers to gap-and-go lower. Look for price to move down through overnight low 5778.25. Look for buyers just below, down at 5777 and two way trade to ensue.
Hypo 2 stronger sellers press down to 5748.25 before two way trade ensues.
Hypo 3 buyers work into the overnight inventory and close the gap up to 5792.25 then continue higher, up through overnight high 5797.25. Look for sellers up at 5800 and two way trade to ensue.
Hypo 4 strong buyers work up through 5800 and we rally up to 5837.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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Good stuff, thanks.