So far we have seen interesting globex action to start the week off. The Nasdaq traded inside of Friday’s wide range and held the low end of value before seeing a strong rotation higher. The move merited splitting the profile in half to see a clearer picture of the auction.
Before thrusting higher the market spent a considerable amount of time linger on those lows and from price action alone it looks like a weak low. However, from the profile view the volume distribution is decent. The globex high however seems a bit weaker.
The early battle ground is right near the 4200 century market. It will likely serve as an early pivot for the session. I have noted this zone on the following market profile chart:
We have Fed’s Lockhart speaking on US Economic Outlook at 12:40pm down in Atlanta. He is a voting member of the FOMC and may shake this market up a bit. This week is also monthly option expiration so we may see some big intraday waves, something to keep in mind.
Primary hypo for today is open auction in range, sellers work to close the overnight gap to 4201.50 and we see if this level attracts responsive buyers who then work toward overnight high 4227.50, then target MCHVN 4233.25 and potentially probe the upper pocket at 4240.50.
Hypo 2 is sellers capture the 4200 pivot then look to take out overnight low 4195 and test the LVN at 4193. Losing this level opens us up to retest Friday low 4181 which puts us in gap territory. Range gap fill is 4163.25 full gap fill is 4152.
Hypo 3 is drive higher, take out poor-looking overnight high and work up to test Friday session high 4248.50 and then test up to 4260 area.
These price levels are all highlighted on the following volume profile chart:
HYPO 2, the morning selling one, played out lockstep, now retesting the MID/Friday LOD