NASDAQ futures are coming into Monday with a slight gap up after an overnight session featuring normal range and volume. Price worked sideways overnight in a stable manner, holding inside last Friday’s range.
The economic calendar is light today. We only have to be aware of the 3- and 6-month T-bill auctions at 11:30am. Also, a reminder, there are FOMC Minutes out Wednesday afternoon.
Last week US markets worked higher through Tuesday before liquidating hard ahead of the Wednesday open, based off politics. The selling continued through all of Wednesday, then we spent the rest of the week working back up-and-into the news driven move. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a normal variation up. The day began with a gap up and a small drive higher before 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 5635.50 then continues lower, down through overnight low 5648.75 and continuing lower, down to close the gap at 5629.50 before two way trade ensues.
Hypo 2 buyers work up through overnight high 5665.25 and slowly work higher, up to 5700 before two way trade ensues.
Hypo 3 strong sellers press a liquidation down to 5563.50 before two way trade ensues.
Volume profiles, gaps, and measured moves: