NASDAQ futures are coming into the new month with a slight gap up after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing up above the Friday high. As we approach cash open price is hovering just above the Friday high.
On the economic calendar today we have ISM manufacturing and construction spending at 10am followed by 3- and 6-month T-bill auctions at 11:30am.
Last week featured a trend up Monday. Then continuation through Tuesday on the NASDAQ despite some weakness in the other indices. Then a continued rally for the rest of the week.
The last week performance of each major index is shown below:
On Friday the NASDAQ printed a trend up. The day began with a gap down to right along the Thursday low. After a brief open two-way auction buyers stepped in and made a strong push. There was a bit of a battle along the Thursday midpoint but by late morning buyers were back to campaigning higher. Midway through New York lunch buyers pushed up beyond the Thursday high and price spent several hours consolidating up on these highs before spiking higher into the close.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 15,849.25 before two way trade ensues.
Hypo 2 stronger sellers trade down to 15,809.25 before two way trade ensues.
Hypo 3 buyers press up through overnight high 15,914.75 and tag 15,935.
Levels:
Volume profiles, gaps and measured moves:
