NASDAQ futures are priced to start the week with a small gap down after an overnight session featuring a normal range on normal volume. Price managed to push down through the Christmas Eve range and the day prior but found responsive buyers ahead of the open gap at 4590.50.
The economic calendar is empty today.
Last week price was in grind up mode. Last Wednesday we printed a normal variation up day. During the thin Christmas eve trade price continued its grind higher.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4610.75. From there look for a move to take out overnight high 4619. Look for buyers to continue higher, taking out Christmas Eve high 4630. Look for responsive sellers up at 4637 and two way trade ensues.
Hypo 2 sellers defend around 4611 and work lower to take out overnight low 4592.50 and close the Tuesday gap down to 4590.50. Look for a continued move down to 4575 then responsive buyers and two way trade.
Hypo 3 strong buyer emerge. Take out overnight high 4619 then 4637 early. Sustain trade above these prices setting up a secondary leg to target 4668.50.
Levels:
With the correction almost complete, it’s time trot out my favorite bear market song:
https://www.youtube.com/watch?v=krF6LpUXODc
Why, I can’t tell you.
I can’t get down with that honky jive.