Nasdaq futures are coming into the week gap down after printing an elevated range on slightly abnormal volume. Price made a hard push lower on the globex open yesterday evening and selling pushed us below Friday’s range before finding buying. Since then 2-way trade has ensued and the session overall looks balanced. We are currently priced to open near last Friday’s low.
The economic calendar is quiet this morning. At 9:45am we have Chicago Purchasing Manager. As the week matures investors will be shifting their attention to Friday morning’s Non-farm Payroll ahead of the Labor Day weekend.
Last week started out with a dramatic gap down and early liquidation. The NYSE invoked Rule 48 Monday-Wednesday to quell volatility and it appears to have helped. Monday’s low pricing turned out to be a bargain. For the rest of the week price essentially traded higher.
Friday we printed a neutral day, barely, after making a second range extension down by about 2-ticks. It was the fourth neutral day in a row.
Heading into today, my primary expectation is for buyer to push into the overnight inventory and close the gap up to 4332.50. Look for some churn defense from the sellers and pushy rotations in both directions (chop) throughout the day as OTF postures heading into September. From there look for sellers to continue pushing higher to close the open 8/20 gap up at 4363.50.
Hypo 2 buyers struggle to close the overnight gap as sellers are seen defending the 4300 century mark. Seller make a move to target overnight low 4270.25 setting up a slow grind lower to target 4218.25.
Hypo 3 is a summer grinder, marking time today to burn up the month. Look for range trade from about 4280 – 4325.