NASDAQ futures are heading into the new month gap up after an overnight session featuring normal range and volume. Price held last Friday’s range on a balanced session and is approaching session high as US open approaches.
On the economic calendar today we have ISM Manufacturing at 10am. Also both the 3- and 6-month T-bills will be auctioned at 11:30am.
Last week price worked lower. Wednesday featured a pro gap down, and Thursday’s attempt to fill it was rejected–continuing the descent lower. Friday morning featured selling, but by lunchtime the market was in balance and two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4335.50. Look for buyers to defend around here then work higher to target overnight high 4344.25. Look for responsive sellers up at 4368 before two way trade ensues.
Hypo 2 buyers gap and go higher, take out overnight high 4344.25 early then sustain trade above 4368 setting up a move to target 4387.25 before two way trade ensues.
Hypo 3 sellers close overnight gap down to 4335.50 then take out overnight low 4318. They continue lower to target the 4300 century mark. Look for buyers down at 4293 and two way trade to ensue.
Volume profiles, gaps, and measured moves: