Nasdaq futures are price to open gap down to start the week. The last two Monday’s have stated gap up and pushed strength early only to reverse. Thus this week represents a fresh look to the markets. Volume and range are both normal on the globex session and overall market profile structure is ugly.
On the economic calendar we have NAHB Housing Market Index at 10am and an otherwise open schedule.
Friday we consolidated inside the upper quadrant of Thursday’s trend day. The session started strong, exceeding Thursday’s high and affirming the risk free nature of the trend day. However the session was a slow grind lower with no clear emerge of bulls.
Heading into today, my primary expectation is for buyers to work into the overnight inventory. Look for a push up to 4489.25 to close the overnight gap. If they can continue to exceed overnight high 4493.75 then look for a run to the 4500 century figure.
Hypo 2 is sellers push off the open and test below overnight low 4470.50. Look for buyers to defend 4458.50 and two way trade to ensue which might close the overnight gap up to 4489 but will stall ahead of 4493.75.
Hypo 3 is a push down through 4458.50 to target the composite HVN at 44550.
Hypo 4 we aggressive press higher, take out Friday’s high 4506.75 and target the gap up at 4515.50.
Levels:
