NASDAQ futures are coming into Tuesday gap up after an overnight session featuring elevated volume on extreme range.  Price worked higher overnight, staying inside the Monday cash range.  As we approach cash open price is hovering above Monday’s midpoint.

On the economic agenda today we have new home sales and consumer confidence at 10am, 4- and 52-week T-bill auctions at 11:30am, and a 2-year Note auction at 1pm.

Yesterday we printed a neutral day.  The day began gap up which sellers quickly worked closed before a strong responsive bid stepped in ahead of last Friday’s low.  Buyers stalled out just beyond last Friday’s midpoint and we worked lower, down through the daily range making a new session low.  We ramped higher into the bell and then spiked a bit more to the upside after Alphabet reported earnings.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6665.50  From here we continue lower, down through overnight low 6654 before two way trade ensues.

Hypo 2 buyers gap and go higher, sustaining trade above 6700 setting up a move to take out overnight hgih 6717.75 before two way trade ensues.

Hypo 3 stronger sellers come in and we liquidate down to 6600 before two way trade ensues.  Stretch downside target is 6578.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Monday gap up after an overnight session featuring elevated range and volume.  Price was balanced overnight, sustaining trade in the lower quadrant of last Friday’s double distribution trend down.

On the economic calendar today we have MARKIT manufacturing/service/composite PMI at 9:45am, existing home sales at 10am, and a 3- and 6-month T-bill auction at 11:30am.

Also be aware Google parent Alphabet, Inc is reporting earnings after-market-close.  This is a NASDAQ mover.

Last week we chopped.  Some gap ups early in the week, gap downs later in the week.  Chop.  The Russell showed relative strength.  The last week performance of each major index is shown below:

On Friday the NASDAQ printed a double distribution trend down.  The day began with a gap down then a selling drive away from Thursday range.  Price continued lower before coming into balance just ahead of the week’s low.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6676.75.  From here sellers continue lower, down through overnight low 6660.  Look for buyers down at 6635 and two way trade to ensue.

Hypo 2 buyers gap and go higher, up to close the gap at 6777 before two way trade ensues.

Hypo 3 stronger sellers take price down to 6580 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Friday gap down after an overnight session featuring elevated range and volume.  Price worked down below Tuesday’s low, Tuesday the conviction trend up day.  Shortly after price came into balance.  As we approach cash open price is hovering around inside yesterday’s lower quadrant.

There are no economic events today.

Yesterday we printed a normal variation down.  We started out gap down and drove lower.  Just below the Wednesday low a responsive bid stepped in but a session high was made in the first hour.  Sellers became initiative in the late morning and pushed us deep down into Tuesday’s trend up.  Much chop occurred here before an afternoon ramp took hold.  We ended the day well below the daily midpoint.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6777.  From here we continue higher, up through overnight high 6790.25.  Look for sellers up at 6791.75 and two way trade to ensue.

Hypo 2 sellers make a quick rejection down and out of the Thursday low 6755.25 setting up  a move down through overnight low 6733.75.  Look for buyers down at 6724.25 and two way trade to ensue.

Hypo 3 stronger buyers sustain trade above 6800 setting up a move to close the open gap way up to 6843.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Thursday gap down after an overnight session featuring elevated range and volume.  Price campaigned lower during extended trade, working down near the Wednesday low but ultimately holding prior day range.  At 8:30am Initial/Continuing jobless claims came out below expectations and Philly Fed came out better-than-expected.

Also on the economic agenda today we have leading indicators are 10am followed by a 5-year TIPS auction at 1pm.

Yesterday we printed a normal variation up.  The day began with a slight gap up which was quickly filled, then we continued to drive lower, working back down into the midpoint of Tuesday’s trend up before finding a strong responsive bid and spending the rest of the day auctioning higher.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6843.  Look for sellers up at 6845.50 and two way trade to ensue.

Hypo 2 stronger buyers work up to 6856.50 before two way trade ensues.

Hypo 3 sellers gap-and-go lower, sustaining trade below 6800 to set up a move down to 6761 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range on normal volume—a trait unseen in globex for many months.  Price was balanced overnight, briefly taking out Tuesday’s high before settling into balance.

The economic calendar is light today—crude oil inventories at 10:30am and Fed Beige book at 2pm.

Yesterday we printed a trend up.  The day began with a gap up and and out of range which led to a gap-and-go higher.  The rest of the session was spent auctioning higher, offering little in the way of a pullback.

Trend day.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6828.50.  From here we cotninue lower, poking down below overnight low 6816.50 before two way trade ensues.

Hypo 2 stronger sellers trade us down to 6809.75 before two way trade.

Hypo 3 buyers work up through overnight high 6858.25 setting up a move to target the open gap at 6883.75 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Tuesday gap up, out of range after an overnight session featuring elevated volume and extreme range.  Price worked higher all night, at first rapidly after Netflix reported better-than-expected earnings and guided higher Monday evening, then slowly throughout the night to levels unseen since late March.  At 8:30am housing starts and building permits both came in better-than-expected.

Also on the economic calendar today we have industrial/manufacturing production at 9:15am, a 4-week T-bill auction at 11:30am, and IBM earnings after-market-close.

Yesterday we printed a neutral extreme up.  The day began gap up in range.  Sellers worked the overnight gap nearly closed before a strong buy stepped in. Sellers worked a full gap fill later in the morning, eventually taking out overnight low by a few ticks before a responsive bid stepped in.  We traversed the entire daily range and eventually closed at session high.

Neutral extreme.

Heading into today my primary expectation is for buyers to gap-and-go higher.  Price trades up to 6774.75 before two way trade ensues.

Hypo 2 sellers work into overnight inventory and close the gap down to 6712.75 then continue lower, down through overnight low 6698.50.  Look for sellers down at 6694 and two way trade to ensue.

Hypo 3 stronger buyers sustain trade above 6774.75 setting up a move to target 6814.75 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into the week gap up after an overnight session featuring elevated range and volume.  Price was choppy overnight, creating a balanced profile while trading inside of the Friday range.  At 8:30am advance retail sales data came out better-than-expected.

Also on the economic docket today we have business inventories at 10am, 3- and 6-month T-bill auctions at 11:30am, and long-term TIC flows at 4pm.

Last week markets worked sideways-to-higher in choppy, volatile action.  The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation down.  The day began gap up to new high-of-week.  Sellers drove lower closing the gap and eventually taking out the Thursday low before responsive buyers stepped in.  Sellers became initiative later in the day, making a new session low before the week’s end.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6659.75.  From here we continue lower, down through overnight low 6642.25.  Look for buyers down at 6639.75 and two way trade to ensue.

Hypo 2 buyers gap-and-go higher, up through overnight high 6698.  Look for sellers up at 6708.25 and two way trade to ensue.

Hypo 3 stronger buyers sustain trade above 6708.25 setting up a move to target 6750.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Thursday gap up after an overnight session featuring elevated range and volume.  The first non-extreme globex session in several weeks.  At 8:30am initial/continuing jobless claims data came out below expectations.

There are no other important economic events today.

Yesterday we printed a neutral extreme down.  The day began gap down in-range, we filled with a hard move up early on.  Then we went range extension up before traversing down through the entire daily range and closing near the lows.

Neutral extreme down.

Heading into today my primary expectation is for a gap-and-go higher, up through Wednesday high 6663.25.  Look for sellers up at 6666 and two way trade to ensue.

Hypo 2 sellers work into overnight inventory and close gap down to 6592 setting up  a move to take out overnight low 6585.  Look for buyers down at 6578.75 and two way trade to ensue.

Hypo 3 stronger buyers sustain trade above 6666 setting up a move to target 6700.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Wednesday gap down after an overnight session featuring extreme range and volume.  Price gradually slipped lower overnight, offering little retrace, putting nearly all the overnight inventory short.  At 8:30am consumer price index data was in-line with expectations.

Also on the economic agenda today we have crude oil inventories at 10:30am and FOMC minutes at 2pm.

Keep an eye on Capitol Hill for information pertaining to Facebook and how testimony from the company’s 33 year-old CEO Mark Zuckerberg is received.

Yesterday we printed a neutral extreme up.  The day began gap up, inside Monday’s big range.  An attempt lower was made early on but responsive buyers stepped in ahead of the full gap fill.  Buyers became initiative ahead of New York lunch, working us range extension up but stalling ahead of Monday’s high.  We then went range extension down, but not by much, putting us neutral.  THEN we traversed the entire range and went range extension up AGAIN, eventually closing near session high, earning the neutral extreme designation.

There was a mini-failed auction.  The Tuesday high-of-day poked just beyond last Thursday’s high, last Thursday, April 5th.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up at 6623.75 setting up a move to take out overnight high 6627.75 before two-way trade ensues ahead of the 2pm FOMC minutes.  Use third reaction after FOMC minutes to dictate direction into end-of-day.

Hypo 2 sellers gap-and-go lower, take out overnight low 6550.25 then continue lower, down to 6524 before two-way trade ensues ahead of the 2pm FOMC minutes.  Use third reaction after FOMC minutes to dictate direction into end-of-day.

Hypo 3 stronger sellers press a gap fill down to 6495.75, look for buyers ahead of 6475.75 before two-way trade ensues ahead of the 2pm FOMC minutes.  Use third reaction after FOMC minutes to dictate direction into end-of-day.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Tuesday gap up after an overnight session featuring extreme range and volume.  Price worked higher overnight, twice up through the Monday RTH high while coming into balance.  As we approach cash open, price is hovering above the Monday midpoint.

The economic calendar is light today—a 4-week T-bill auction at 11:30am and a 3-year Note auction at 1pm.

Yesterday we printed a neutral extreme down.  It looks like the only reason it was able to earn the extreme designation is because it went neutral (RE down after being RE up already) so late in the day.

Heading into today my primary expectation is for a gap-and-go higher.  Look for buyers to step in ahead of 6561.75 and work up through overnight high 6624.75.  Seller up at 6639.75 and two way trade ensues.

Hypo 2 sellers work into overnight inventory, down to 6624.75 before two way trade ensues.

Hypo 3 stronger sellers work a full gap fill down to 6496.75 then take out overnight low 6471.75 setting up a move to close the Friday gap down at 6451.50.  This could trigger a liquidation down to 6400 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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