NASDAQ futures are coming into the week gap up after an extended trade featuring normal range on elevated volume. Price worked lower overnight, briefly trading below the low set early last Thursday before the day became a trend up. Responsive buyers stepped in soon after price tested below the Thursday low and the rest of the session has been spent working higher.
The economic calendar is light during the holiday shortened week. The only items on the docket today are a 3- and 6-month T-bill auction at 11:30am.
Last week most indices essentially marked time. The traded lower, then higher, then faded. The performance of each major index is shown below:
On Friday we printed a double distribution trend down. The day began flat and after a two-way auction sellers stepped in late in the afternoon and slowly worked price lower—down through the midpoint of the trend day seen Thursday.
Heading into today my primary expectation is for an early push up to 6331.50. From here sellers step in and two-way trade ensues, eventually closing the gap down to 6312.75.
Hypo 2 sellers push into overnight inventory and close the gap down to 6312.75 then we take out overnight low 6291.25. Look for buyers down at 6280 and two way trade to ensue.
Hypo 3 buyers sustain trade above 6332.75 setting up a move to target 6351.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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