NASDAQ future are higher heading into the week after an overnight session featuring extreme range on elevated volume. price was balanced overnight, balancing along the upper quadrant of last Friday’s range until about 8am New York when buyers stepped in and initiated higher prices. As we approach cash open price is hovering just below all-time highs.
On the economic calendar today we have 6-month bill and 3-year note auctions at 11:30am and 3- month bill and 10-year note auctions at 1pm.
Last week featured a choppy drift higher during holiday-shortened week. Russell 2000 lagged behind all week but ramped strong into the weekend. 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 slight gap down in range. After a brief open-two-way auction buyers stepped in and drove higher, driving up through the Thursday high and unto last Wednesday’s range. We ended the week chopping along the Wednesday midpoint.
Heading into today my primary expectation is for buyers to gap-and-go higher, setting a new record high above 14,883.75 on their way to tagging 14,900.
Hypo 2 stronger buyers tag 14,948.50 before two way trade ensues.
Hypo 3 sellers work into the overnight inventory and close the gap down to 14,811.50. Look for buyers down at 14,751.75 and for two way trade to ensue.
Volume profiles, gaps and measured moves:
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