NASDAQ futures are coming into Monday gap down after an overnight session featuring elevated range and volume. Price traversed beyond both the high and low of last Friday’s range, in that order, and as we approach cash open prices are hovering along the Friday low.
The economic calendar is light to start the week. We have a 3- and 6-month T-bill auction at 11:30am then a Monthly Budget Statement at 2pm.
Last week we slow drift rallied through Wednesday, sold off Thursday morning, discovered a responsive bid Thursday afternoon and rallied into the weekend. The Russell lagged. The performance of each major index from last week is shown below:
On Friday the NASDAQ printed a neutral extreme up. It was a mild day, but price managed to take out initial balance low and high. The day began with a gap down, inside the Thursday range. After a two-way auction, price briefly poked below IB low before spending the rest of the day slowly rallying and ultimately closing the overnight gap to-the-tick.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6309.25. From here we continue higher, to about 6310 before two way trade ensues.
Hypo 2 sellers press down to 6253.75 before two way trade ensues.
Hypo 3 stronger sellers press down to 6241.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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