NASDSAQ futures are heading into Thanksgiving week gap up after an overnight session featuring elevated range and volume. Price drifted higher overnight, drifting up to new all time highs. As we approach cash open price is pinned to all-time highs.
On the economic calendar today we have existing home sales at 10am, 6-month bill and 2-year note auctions at 11:30am and 3-month bill and 5-year note auctions at 1pm.
Last week saw some weakness early Monday. Then a week-long rally in the tech-heavy NASDAQ while the S&P sort of drifted and the other two indices were weak.
The last week performance of each major index is shown below:
On Friday the NASDAQ printed a neutral day. The day began with a gap up beyond Thursday’s high. After a brief test lower buyers stepped in and pushed a bit beyond 16,600. Price ended up making a range extension up around lunchtime and then went neutral shortly afterwards.
Heading into today my primary expectation is for buyers to gap and go, tagging 16,666 before two way trade ensues.
Hypo 2 stronger buyers tag 16,700.
Hypo 3 sellers work into overnight inventory and close the gap down to 16,572.50. Look for buyers down at 16,544.25 and for two way trade to ensue.
Levels:
Volume profiles, gaps and measured moves:
