NASDAQ futures are coming into the Monday after the U.S. Presidential inauguration and the week before Chinese New Year with a slight gap down after an overnight session featuring normal range and volume. Price worked down near the low from last Thursday before buyers stepped in and two way trade ensued.
The economic docket is light today. The only events on the calendar are a 3- and 6-month 11:30am. There are no major economic events scheduled this week. We do have earnings from Google [MUH Alphabet] Thursday after-market-close.
Last week the NASDAQ drifted higher, the Russell was weak, and the Dow and S&P marked time. The performance of each major index is shown below:
On Friday the NASDAQ printed a double distribution trend down. After opening gap up and spiking to a new high, responsive sellers stepped in and worked price lower. They became initiative in the afternoon but could not penetrate the lower quadrant from Thursday before two way trade ensued.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5058.75. From here buyers continue higher, up through overnight high 5059.75. Look for sellers up at 5065 and two way trade to ensue.
Hypo 2 sellers work down through overnight low 5037.25 triggering a quick liquidation down to 5021.50 before two way trade ensues.
Hypo 3 choppy range trade from 5055 to 5040.
Levels:
Volume profiles, gaps, and measured moves:
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Are the HFT algos awake yet?
Mothership hasn’t detected any algo activity today so far. Often see a ping around 1:15PM est