Nasdaq futures are higher on the globex session after printing another extreme session. The range and volume both exceeded 3rd sigma which means statistically it was rare session. Price action was contained inside yesterday’s range, barely. We printed a double top at Monday’s high 4196.25.
The economic calendar picks up steam today. We have the Case Shiller-20 at 9am, Markit Composite PMI at 9:45am, and both Consumer Confidence and New Home Sales at 10am.
Yesterday price opened gap down and quickly pushed lower before triggering a circuit breaker. At this time we had closed the open gap from 10/22/14 at 3950. Next we saw an aggressive push higher which lasted into lunchtime. Buyers stalled just before last Friday’s close and price rolled over. By the close of the session we traded back down into the lower quadrant of the day.
Heading into today, my primary expectation is for sellers to push into the overnight inventory and test lower. Look for buyers to defend 4122 and then a push to take out overnight high 4196.25.
Hypo 2 sellers push down through 4122 opening up a push down to 4139.50.
Hypo 3 Tuesday grind mode sets in, and we churn between 4150 and 4100 with a slight downward skew.
Levels:
