NASDAQ futures are coming into Tuesday flat after an overnight session featuring normal range and volume. Price worked sideways overnight, holding inside Monday’s range. Just after closing bell Monday, Google earnings erased much of the progress achieved by buyers late into Monday’s session. At the core of the selling reaction was the $2.7 billion dollar anti-trust fine levied against the tech giant by the European Union.
At 9am today the House Price Index came out slightly below expectations. Also on the economic calendar today we have Consumer Confidence at 10am, a 4-week T-bill auction at 11:30am, and a 2-year Note auction at 1pm.
Yesterday we printed a neutral day. The day began flat and buyers made a move up to the open gap from last Thursday (primary hypo). Sellers then stepped in and pushed the market range extension down. Then we traversed the entire daily range, pushing neutral, then to new all-time highs before ultimately falling back to the daily mid after Google. Neutral print.
Heading into today my primary expectation is for buyers to work up to 5937.50 then stall. We then take out overnight low 5920.75 setting up a move to target the naked VPOC at 5907.25 before two way trade ensues.
Hypo 2 sellers push off the open, down through overnight low 5920.75 and work down to fill the open gap at 5883.25 before two way trade ensues.
Hypo 3 buyers work up through overnight high 5842.75 and probe Monday’s high 5954.75 continuing higher to 5967.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
Google (Alphabet) is going to come under increasing regulatory pressure – at risk being broken up. It will be interesting to see how this develops.
Is the combined balance sheet of CBs shrinking? No? BTFD.