NASDAQ futures are coming into the week gap up after an overnight session featuring elevated range and volume. Price was choppy overnight, creating a balanced profile while trading inside of the Friday range. At 8:30am advance retail sales data came out better-than-expected.
Also on the economic docket today we have business inventories at 10am, 3- and 6-month T-bill auctions at 11:30am, and long-term TIC flows at 4pm.
Last week markets worked sideways-to-higher in choppy, volatile action. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a normal variation down. The day began gap up to new high-of-week. Sellers drove lower closing the gap and eventually taking out the Thursday low before responsive buyers stepped in. Sellers became initiative later in the day, making a new session low before the week’s end.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6659.75. From here we continue lower, down through overnight low 6642.25. Look for buyers down at 6639.75 and two way trade to ensue.
Hypo 2 buyers gap-and-go higher, up through overnight high 6698. Look for sellers up at 6708.25 and two way trade to ensue.
Hypo 3 stronger buyers sustain trade above 6708.25 setting up a move to target 6750.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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