Nasdaq futures are priced to gap up into the week. The overnight session was balanced mostly and traded above Friday’s range mostly. Price managed to push up near last week’s high before finding sellers and transitioning into two-way trade.
The economic calendar is open today. Investors have a major news item on the horizon this week—Thursday afternoon’s FOMC rate decision. The primary expectation is for rates to rise 25 basis points.
Friday the market printed a normal variation up after opening slightly gap down. It was an inside day, meaning the range was contained within Thursday’s range, which was nearly contained inside of the Wednesday range. Essentially last week was three days of compression after sellers ended the 10-day streak of neutral prints.
Heading into today, my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4314. Look for sellers to continue working lower to target the overnight low 4305.25 then the 4300 century mark. Expect responsive buyers at 4298 then two way trade ensues below 4333.50.
Hypo 2 buyers work a gap-and-go higher. Price probes up above the overnight high 4346.50. Look for buyers to test above last week’s high 4352.25 to close the open gap up at 4363.50. Then look for sellers to step in and two way trade ensues.
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