Nasdaq futures are higher as we enter the week on a tight Globex range grind up. Volumes are a little light but still in the realm of normal so far. German business climate numbers gave a boost to markets overnight and Asian stocks saw a strong rally as well. Just after the open today we have Markit PMI stats at 9:45am and this evening the Bank of Japan will release minutes from their October 31st meeting, the stimulus meeting.
Before the market opens Tuesday the US Q3 GDP data will be released as we as several other key economic statistics.
Price are set to open inside of Friday’s price range, above the mid of the slow-fade session. Friday showed signs of excess after going gap up to a new highs and finding sellers. It will be interesting today if sellers can build on their reaction or instead back off. The shortened holiday week might favor the longer term uptrend, however Friday’s auction activity is worth keeping in mind as we head into the week.
The double low that had me concerned last week is out of range unless we saw an abnormal selling-type day and the overall context is balanced. My primary expectation is for sellers to push into this overnight inventory, churn about Friday’s VPOC at 4252.25 before ultimately closing the overnight gap to 4249.25 and testing the overnight low at 4248. I will be looking for signs of responsive buyers just below the overnight lows. Sellers may target the HVN at 4242.
I have highlighted these levels and observations on the following volume profile chart:
