I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,377 Blog Posts

NASDAQ active overnight, here is the Monday trading plan

NASDAQ futures are coming into the week gap down after an overnight session featuring elevated range and volume. Price worked up to a new record high before fading back down to 7000.  At 8:30am personal consumption expenditure data came out in-line with expectations.

Also on the economic agenda today we have Dallas Fed manufacturing activity at 10am, then a 3- and 6-month T-bill auction at 11:30am.

Last week the broad indices were volatile Monday, trading higher, consolidated from Tuesday-to-Thursday, then rallied into the weekend. Here is the last week performance of each major index:

On Friday the NASDAQ printed a double distribution trend day.  The day began with a gap higher.  Sellers stalled during an early attempt lower and we took out Thursday high.  Then after flagging along the highs a trend took hold, higher into the weekend.

Heading into today my primary expectation is for sellers to work down to 6987.75 before two way trade ensues south of 7021.

Hypo 2 buyers work into the overnight inventory and close the gap up to 7029.75.  From here they continue higher, up through overnight high 7047.25 before two way trade ensues.

Hypo 3 stronger sellers work down to 6962.25 before two way trade ensues.


Volume profiles, gaps, and measured moves:

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