NASDAQ futures are coming into Monday gap up after an overnight session featuring elevated range on normal volume. Price was lower Sunday evening and briefly probed below the Thursday low before finding a strong responsive bid and working back up into the high-value zone established last week. At8:30am advance goods trade balance data came out below expectations.
Also on the economic calendar today we have 4 separate Treasury auctions. At 11:30am we have both a 6-month bill and 2-year note auction. Then at 1pm we have a 3-month bill and 5-year note auction.
Last week began with a sharp move lower Monday that discovered a responsive bid. Tuesday was trend up and we spent the rest of the week trading inside the Tuesday range. All the while, the Russell quietly diverged higher. The performance from last week of each major index is listed below:
On Friday the NASDAQ printed a normal variation down. After sellers could not close the early gap up we had a morning rally. It fizzled out ahead of Thursday’s high and we reversed before New York lunch and rent range extension down. Then we spent the rest of the day flagging near the lows.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5825.50. From here we continue lower, down through overnight low 5801.25 and close the gap don at 5795 before two way trade ensues.
Hypo 2 buyers gap and go higher, working towards the open gap at 5878.75 before two way trade ensues.
Hypo 3 stronger buyers form a rally, all the way up to the open gap at 5924.25 before two-way trade ensues.
If hypo 3 plays out, it would negate the bunker buster signal we have from Sunday’s Exodus strategy session.
Levels:
Volume profiles, gaps, and measured moves:
What are you talking about—Strong gap up? strong gap up is like 100 plus points in nasdaq.
that would be a pro gap, thanks for dropping by