NASDAQ futures are coming into Monday with a slight gap down after an overnight session featuring extreme range and volume. Price worked higher overnight, rallying in the early AM hours alongside Asian markets, notably the HKEX which was up more than 1.2% at one point overnight. Then around 8:30am CNBC released a statement from a Chinese government source that erased all those early AM gains, and more. China wants to wait until the American “Who wants to be a President?” contest and impeachment hearings are finished. As we approach cash open, price is hovering above last Friday’s midpoint.
Also on the economic calendar today we have NAHB housing market index at 10am, 13- and 26-week T-bill auctions at 11:30am, and net long-term TIC flows at 4pm.
Last week began with a gap down, then some chop with a slight upward bias through Thursday, then a rally Friday. The Russell lagged behind all week. Here is the last week performance of each major index:
On Friday, the NASDAQ printed a normal variation up. The day began with a gap up to new all-time highs. Sellers worked into the overnight inventory but were rejected before they could reclaim the week’s prior high range. Buyers took control from there working back up to a new high, then chopping until a late session ramp to end the week on the highs.
Heading into today my primary expectation is for buyers to work into the overnight inventory and return to ‘the scene of the crime (news)’ taking out overnight high 8367. Look for sellers up at 8381.50 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 8306.50 and tag 8300, then look for buyers down at 8289 and two way trade to ensue.
Hypo 3 stronger sellers trade down to 8265.50 (Thursday gap) then tag 8254.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
