NASDAQ futures are heading into Monday gap down after an overnight session featuring normal range and volume. The Globex session was balanced, overall. Price went up and exceeded the Friday high before retracing most of the Friday afternoon ramp. At 8:30am Durable Goods orders were pretty bad and by bad I mean well below expectations—especially Ex-Transportation.
Other economic events on the agenda today are Pending Home Sales at 10am, and a 3- and 6-month T-bill auction at 11:30am, $34B and $28B respectively.
Last week we essentially marked time. Prices drifted sideways after gapping up into the holiday shortened week. The chart below displays the weekly return of each major US index:
Last Friday the NASDAQ printed a normal variation up. It opened gap down and made a new low on the week before finding a strong responsive bid. After some two-way for most of Friday, there was a strong afternoon ramp higher.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5343.25 before we churn around at the 5340 level. Eventually we go take out overnight high 5352.50 but look for sellers just above at 5353.75 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 5331 and tag 5327 before two way trade ensues.
Hypo 3 strong sellers press down though 5325.50 and sustain trade below it setting up a move to target 5310.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
