NASDAQ futures are coming into Monday pro gap up after an overnight session featuring extreme range and volume. Price drove higher for the majority of the Globex session, trading up through last Friday’s high early Sunday evening and steadily campaigning higher for the duration of the session. As we approach cash open, price is hovering up inside of last Tuesday’s range.
On the economic calendar today we have Housing Market Index at 10am followed by both 3- and 6-motn T-bill auctions at 11:30am.
Last week kicked off with a gap down and Monday rally. Tuesday featured a choppy balance early on before sellers stepped in and drove lower. Selling continued through Wednesday morning until a choppy balance took hold well above the prior week’s lows. From then onward price rallied, recapturing about half the week’s losses. 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 down in range. Buyers drove into the open but could not close the overnight gap on their first attempt. Instead price reversed the early open drive. Sellers could not however take out the daily low. Instead buyers renewed their campaign higher and by about 1:15pm the overnight gap was filled. The rest of the day was spent chopping higher.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up 9320.75 before two way trade ensues.
Hypo 2 stronger buyers trade up through recent swing high 9345.50 setting up a run to 9400.
Hypo 3 sellers work into the overnight inventory and trade down to 9188 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
