NASDAQ futures are coming into Monday flat after an overnight session featuring normal range and volume. Price worked sideways, holding inside the upper quadrant of last Friday’s range.
The economic calendar features several low-impact events. At 10am we have ISM Service composite and Factory/Durable goods orders. At 11:30am we have a 3-month T-bill auction then at 1pm a 6-month T-bill auction.
Last week US markets worked higher. There were a few mornings early in the week that were dominated by sellers, but both times the sellers found a strong bid and the auction continued to move up. By the end of the week the rally accelerated. The performance of each major index is shown below:
On Friday the NASDAQ printed a trend day. Price worked higher all session long, probing record highs in a continuous, upward manner.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5886. From here price continues higher, up through overnight high 5886.75 before two way trade ensues.
Hypo 2 strong buyers bid price up to 5934 before two way trade ensues.
Hypo 3 sellers press down through overnight low 5875. Look for buyers down at 5870 and two way trade to ensue.
Hypo 4 sellers sustain trade below 5870 triggering a liquidation down to 5838.
Levels:
Volume profiles, gaps, and measured moves:
