NASDAQ futures are coming into Monday gap down after an overnight session featuring normal range and volume. Price drifted lower until about 3am when a strong bid pushed the market up through Friday’s high briefly. The auction then failed and reversed the entire move.
On the economic docket today we have a 3- and 6-month T-bill auction at 11:30am.
Last week we tested higher, then lower, but ultimately marked time on the NASDAQ. Here are the returns of each major index last week:
On Friday the NASDAQ printed a normal variation up. The impulsive move higher late Friday morning was reversed then price worked higher to end the choppy session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4807. Look for sellers ahead of 4810 who work price down through the overnight low 4792.75. Buyers step in around 4785 and 2-way trade ensues.
Hypo 2 sellers make a push off the open, take out overnight low 4792.75 and work lower, down to 4780.25 before two way trade ensues.
Hypo 3 strong buyers close gap up to 4807 then take out overnight high 4817.25 and continue up to close the 4822.75 gap before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
