NASDAQ futures are coming into Monday with a slight gap up after an overnight session featuring normal range and volume. Price worked sideways overnight in balanced trade, holding inside of last Friday’s range.
The economic calendar starts off light this week. We have the NAHB Housing Market Index at 10am, a 3- and 6-month T-bill auction at 11:30am, and Long-term TIC flows at 4pm.
Last week began with a major gap up across the board and we spent the rest of the week slowly trend up.
On Friday the NASDAQ printed a normal variation up. After a brief probe of the Thursday low a strong responsive bid stepped in. Buyers then became initiative and pressed us to new record intra-day highs before we settled into two way trade.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5994.50. Buyers step in here and we work up through overnight high 6011.75. This set up a rally to 6037.75 before two way trade ensues.
Hypo 2 sellers work down through overnight low 5990.25 and continue lower, down to 5974.75 before two way trade ensues.
Hypo 3 tight chop, centered around 6000 and ranging from about 6010-to-5987.25.
Levels:
Volume profiles, gaps, and measured moves:
