NASDAQ futures are coming into Monday gap down after an overnight session featuring extreme range and volume. Price came into the Globex session gap down and continued to drive lower for that first minute of trade, tagging the Friday midpoint and bouncing about halfway back up before that first minute of Sunday evening was complete. Then we chopped along the upper quadrant of the Friday range for the rest of the session. As we approach cash open, price is hovering inside the upper quadrant of Friday’s range.
On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am followed by consumer credit at 3pm.
Last week began with a gap up and steady auction higher. On Tuesday, October 1st prices spiked higher on the open only to reveal a strong responsive sell flow. The auction reversed and by Tuesday afternoon we had taken out Monday’s low. Wednesday featured a strong gap down and trend lower. Thursday morning the trend spiked lower before discovering a strong responsive bid. Price then rallied back up, nearly to the weekly highs by Friday close-of-business. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a double distribution trend up. The day began with a gap up and after a two-way auction buyers assumed control and worked us range extension up. We marked time through New York lunch before continuing to trend up into the close.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7763.75. From here we continue higher, up to 7790.25 before two way trade ensues.
Hypo 2 sellers press down through overnight low 7682.50 setting up a move to close the gap down at 7658 before two way trade ensues.
Hypo 3 stronger buyers tag the 7800 century mark before two way trade ensues.
Volume profiles, gaps, and measured moves: