NASDAQ futures are coming into Tuesday gap down after an overnight session featuring normal range and volume. Price worked sideways along the low-end of Friday’s range overnight.
The economic calendar starts off slow this week. We have Factory and Durable goods orders at 10am and a 4-week T-bill auction at 1pm.
Last week was bullish across the board. By Tuesday morning, we established a strong responsive bid across the board and we spent Tuesday-to-Thursday rallying. Friday marked time. Here is the performance of each major index:
On Friday the NASDAQ printed a normal day. Price briefly rose to a new record intraday high before settling into balance.
Over the long holiday weekend, people on the news talked up war, as if we are right on the brink of it. Also hurricane Irma strengthened to a category 5 and most models have it on a path to hit Florida.
Heading into today my primary expectation is for buyers to push into the overnight inventory and close the gap up to 5987.25. Look for sellers up at 5987.75 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 5968.25 and continue lower, down to 5955 before two way trade ensues.
Hypo 3 stronger buyers press up to 6000 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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