NASDAQ futures are coming into the week flat after an overnight session featuring normal range and volume. Action was balanced overnight. Price briefly exceeded the high set on Friday.
On the economic calendar today we have Manufacturing/Services/Composite PMI at 9:45am, Existing Home Sales at 10am, and 3- and 6-month T-bill auctions at 11:30am.
Last week began strong with price action drifting higher through Wednesday before balancing out. The last week performance of each major index is shown below:
Last Friday the NASDAQ formed a normal variation up. The day began with a gap down and choppy opening hour which ultimately gave way to afternoon buying. Buyers were unable, however, to close the overnight gap by the end of the day.
Heading into today my primary expectation is for buyers to work up through overnight high 5922.75 and close the gap up at 5924.50 before two way trade ensues.
Hypo 2 sellers press down through overnight low 5905 and work down to the open gap at 5883.25 before two way trade ensues.
Hypo 3 stronger buyers press up to new record highs, above 5935.50 and work up to 5953.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
My take: For as long as CB’s are expanding their balance sheet, the nasdaq trend line is heading in the same direction = up. The daily/weekly seesaw is irrelevant. Buy.