NASDAQ futures are coming into Monday flat after an overnight session featuring normal range and volume on a balanced session that held the upper quadrant of last Friday’s trend day.
The economic calendar is light this week. Today the only events are a 3- and 6-month T-bill auction at 11:30am, then Consumer Credit at 3pm.
Last week we kicked off 2017 with a gap up that sellers could not press into. Instead we spent the rest of the week trading higher, accented by a Friday trend day. Here is the performance of each major index last week:
Heading into today my primary expectation is for sellers to work down through overnight low 5002.50 and test the 5000 level where buyers step in and two way trade ensues.
Hypo 2 stronger sellers press down to 4982 before buyers step in and two way trade ensues.
Hypo 3 buyers work up through overnight high 5017 and continue higher, up to 5020 before two way trade ensues.
Volume profiles, gaps, and measured moves: