Nasdaq futures are set to gap up as we head into a fresh week. Volume is running normal and range is elevated a bit above normal, but overall it was an orderly auction. Price managed to push down into the upper quad of Friday’s range before finding buyers who worked up into last Wednesday’s value.

Heading into today the economic calendar is quiet. At 10am month-over-month Factory Orders are out, a medium impact number. However, most of the weight will be on Friday’s Non-Farm Payroll data, with Wednesday’s ADP employment change and Thursday’s Initial/Continuing jobless claims serving as appetizers.

Last week the Nasdaq managed to make a new contract high on Monday before rolling over and spending most of the week trading lower. It wasn’t until late Thursday afternoon that buyers emerged with enough conviction to entice initiative buyers onto the tape.

Heading into today, my primary expectation is for buyer to push a bit higher, but stall out around 4484.50-4490. I will look for sellers to close the overnight gap down to 4467.50. If buyers aren’t found here then continue lower to test below overnight low 4457. This could lead to an acceleration, especially if we trade below 4445.

Hypo 2 buyers push up through 4490 and grind higher to target 4517.

Hypo 3 we chop and build value between 4489 and 4457.

Levels:

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After nearly two weeks of globex volume running hot, last night comes around, and the action is completely benign. Nasdaq futures are up overnight on a range that’s high-end normal on low volume.

There’s a news dump at 10am, including ISM Manufacturing, Construction Spending, ISM Prices Paid, and University of Michigan’s final Confidence read for April.

Yesterday most closely resembled a trend day down. It may constitute a triple-distribution trend day, if such a name existed. Toward the end of the session buyers came in, about halfway into the 4/20 range. If you recall, 4/20 was two Mondays ago, and we started with a gap up and ran all day—in essence it was a conviction day.

So we have two combating forces here which will tell the major story going into the weekend. Market Profile theory states that any entry in the direction of the trend on a trend day is a risk-free entry into the following session, meaning, we are likely to at least go one tick below the trend day low in the following session. The other force is the proclivity of a conviction day to be defended.

Heading into today, my primary expectation is for a choppy open until we hear the economic data points at 10am. After, I will look for sellers to push into the overnight (and late-yesterday afternoon) inventory and test their conviction. If sellers can trade below 4409 I will look for them to test yesterday’s low 4386.50.

Hypo 2 is we muddle around north of 4400 in choppy, two-way, Friday trade.

Hypo 3 is we gap-and-go, demonstrating some v-shape tendencies. Look for responsive selling up at 4452.

Hypo 4 is we test higher early on, to 4432, then reverse and continue working lower to test Thursday low 4386.50. If liquidation takes hold look for a gap fill down to 4349.50.

Levels:

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Nasdaq futures are lower overnight. Sellers managed to extend the range just a touch beyond first sigma, doing so on normal volume.

The first thing that jumped out this morning was the overnight profile structure, a lovely lowercase-b check it out:

It was even more pronounced before the 8:30am data. This type of profile suggests a long liquidation took place. A long liquidation is a temporary phenomenon where order flow is created by stops being run. This type of print, in the context of a bigger uptrend, tends to occur at-or-near the inflection point—a welcoming development on the weak week.

Heading into today, my primary expectation is for buyers to fill the overnight gap, pushing trade up to 4478.75. From there we will see if they can take out the overnight high just above at 4479.50. Overall I’m looking for sellers to defend the region from 4485-4490 and two way trade to ensue.

Hypo 2 is buyers push through 4490 and sustain trade above it to set up a leg higher to target Tuesday’s gap up to 4515.50.

Hypo 3 is sellers continue working lower, take out overnight low 4452. Look for responsive buyers at 4442.50 then 4433.

Levels are pictured above.

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Nasdaq futures are lower overnight on a slightly elevated range but normal volume. Price drifted lower for much of the night session and the selling accelerated after the GDP data came out much weaker than expected.

Heading into today, we are on the cusp of a pro gap. However, due to the large range printed yesterday, we are still set to open inside prior day range.

Yesterday we saw Monday’s selling accelerate down into the Thursday/Friday gap and fill it before finding a strong responsive buyer. Once found we spent the rest of the morning trading higher before fizzling out about half way into Monday’s range.

On the agenda today we have Pending Home Sales at 10am, Crude Oil inventory at 10:30am, and the FOMC rate decision at 2pm.

My primary expectation this morning is for buyers to push into the overnight inventory. If they can push through 4500 then look for a gap fill up to 4515.50 before we quiet down and wait for the FOMC.

Hypo 2 sellers drive down off the open to test yesterday’s low 4471.75 and if they break through look to test 4459 and if that cannot hold then a liquidation trade may take hold.

Levels:

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Nasdaq futures are stable and traded a normal range and volume overnight despite the earnings reaction in Apple shares, the riots in Baltimore, and the continued uncertainty in Greece. As important as those events are, participants may already have their attention on Wednesday when we will hear the GDP stats in the morning and FOMC rate decision in the afternoon.

Yesterday we started strong but soon reversed and spent most of the session trading lower.

Heading into today, my primary expectation is for buyers to push into the overnight inventory and target the overnight high 4533. Look for sellers to show up near 4539 and two way trade to ensue.

Hypo 2 we stall out around 4530 and churn sideways between there and 4515.

Hypo 3 sellers work back in to target overnight low 4514.25 then 4509 to open up a gap trade down to 4482.50.

Levels:

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Nasdaq futures are higher overnight on a session featuring normal volume and range. Sellers had something going in the early AM hours but by 5am they waffled their opportunity and higher the prices continued.

The economic calendar is quiet this morning. We have Markit Composite/Service PMI at 9:45am. Several sources expressed concern over the lack of participation by semiconductors during last week’s tech rally, and news from AMAT already has the industry in focus again, to start the week. However the most notable external event will likely be Apple earnings, scheduled for release after market close.

Last week we traded higher throughout the week, quickly, leaving three open gaps in our trail. This suggests aggressive other time frame activity occurred during the week. The week was capped off Friday with a big gap up and a double distribution trend day.

Let’s be clear about where the Nasdaq currently stands. Yes, we did manage to mark a new all-time closing high last week. However, the real all-time high, the glory shot, is still about 37 Nasdaqs higher. You can see it below on the following weekly composite chart:

Heading into today, my primary expectation is for seller to push into the overnight inventory and trade down to 4532.75 before two-way trade ensues, leaving another open gap behind.

Hypo 2 is buyers continue exploring higher, right from the open, and we trend higher to 4575.25 before finding responsive selling.

Hypo 3 sellers push a full gap fill down to 4529 before two-way trade ensues.

Levels are highlighted below:

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Nasdaq futures are up overnight on an abnormal range and volume over second sigma. Fueling the action overnight in part were earnings from major tech corporations Google, Microsoft, and Amazon. This morning we heard from a few big biotech names including Biogen and AstraZeneca who are both trading lower. This may trigger a rotation away from the hot space and into tech.

At 8:30am Durable Goods Orders came in with a big beat on the headline number. We also have the Baker Hughes US Rig Count at 1pm.

Yesterday we printed a normal variation day up with a distinct amount of afternoon imitative buying. The action set us up to fill the open gap left behind March second and had enough fuel in the tank to push us to new contract highs.

Market profile loses a bit of its might when we trade up in open air. Whenever we break a significant level it’s a good idea to take a high level snapshot of the action and see where we are. As you can see on the following weekly Nasdaq composite chart, were are almost to all time high on the index:

We can still do measured moves to put some working levels on the chart, as you will see on the white volume profile chart below.

Heading into today, my primary expectation is for sellers to push into the overnight inventory and work down to 4506 before finding buyers and a Friday, two-way grind ensues.

Hypo 2 is buyers drive off the open and make a move up to 4518.25 before finding responsive sellers and two way trade ensues.

Hypo 3 is a strong, gap and go drive to target 4527 with a stretch target of 4538.50.

Hypo 4 is a drive down, gap fill to 4482.50 with a continuation move down to 4450.75.

Levels:

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The Nasdaq globex session was one again busy and once again the scene of aggressive selling until early this morning when buyers stepped in and stabilized the action just ahead of yesterday’s session lows.

The economic calendar is seemingly busy today but mostly with low/medium impact events including the initial/continuing jobless claims (came in lower than expected) at 8:30am (muted reaction), Markit Manufacturing PMI at 9:45am, New Home Sales at 10am, Natural Gas storage stats at 10:30am, and Kansas City Fed at 11am.

The Nasdaq’s behavior is likely to take its cues today from the behavior the FB shares after they reported yesterday evening. Its shares have been active overnight as well. Also, after market close we will here from tech juggernauts Google, Microsoft, and Amazon.

Yesterday we printed a normal variation up marking the third up day (2.5 up day perhaps, given Tuesday’s normal print) in a row. Sellers were active at the open but the auction reversed during the initial balance and worked higher. Sellers pushed in near the close.

Heading into today, my primary expectation is for buyers to push into the overnight inventory to close the overnight gap up to 4446. I will look for them to overshoot this area before finding sellers up near 4453.75 who work us back down to 4429 and two way trade ensues.

Hypo 2 is sellers push off the open to take out overnight low 4418. Look for responsive buyers near 4415 and two way trade ensues with sellers sustaining price below 4441.

Hypo 3 is a drive up through yesterday’s high 4457.50 and a push to target the open gap left behind on March 2^nd up at 4478.75.

Hypo 4 is drive down through 4414.75. If seller can take trade down through 4400 a liquidation may take hold and push us down to 4355.

Levels:

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Traders were busy overnight pushing the Nasdaq around. Price managed to print an abnormal 47.75 point range downward and starting around 6am traders have nearly gone round trip on the range, taking us back to positive as we head into cash open.

Economically, we have Existing Home sales at 10am and Crude/Distillate inventories at 10:30am. KO,BA, and MCD are some of the big players who reported earnings premarket, and after the close we’ll hear from FB, T, QCOM, and EBAY.

Yesterday we opened gap up and printed a normal day with no range extension. We’re currently priced to open on the top-end of its range.

Heading into today, my primary expectation is for sellers to work into the overnight inventory and push dwon to 4427. From here I will look for buyers to step in and start working toward the overnight high 4446.25 to ultimately target the HVN at 4450.75.

Hypo 2 is buyers drive off the open, take out 4446.25 (ONH) early and test through 4453.25. If they can sustain trade above this level then look for a run to new high on the Nasdaq.

Hypo 3 is sellers responds at 4450 and reverse us down through 4426 setting up another tour of the choppy range into the end of the week.

Hypo 4 sellers push into overnight inventory off the open and sustain trade below 4426 to target the overnight low 4398.50.

Levels:

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Nasdaq futures are up on abnormal volume and managed to print an abnormal 2^nd sigma range as well. The globex session managed to print out a low by about 6pm eastern time and spent the rest of the session trading higher. Around Europe open it began trading lower but found initiative buyers around 4417.

The economic calendar is quiet today and the market is more likely to take its cues from natural order flow, earnings, and macro currents.

Heading into today my primary expectation is for sellers to work into the overnight inventory and attempt a gap fill. If they can close the range gap (4417) they might have a chance at it. However, early on I expect buyers to defend ahead of 4417 and make a push to take out overnight high 4441.

Hypo 2 is buyers drive off the open, squeezing higher to target the HVN at 4450.75 before finding responsive sellers and 2-way trade ensues.

Hypo 3 is a full gap fill down to 4407.25 and a break of overnight low 4402.75. This may lead to a liquidation especially if trade goes below 4396.50.

Levels:

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