NASDAQ futures came into the week gap down after an overnight session featuring normal range and volume. Given the extremely balanced nature of extended trade, given the context of ending last week with a trend day, and given the fact I woke up a touch late I had to buy the futures in the premarket instead of putting my daily report out in time :-/
Anyhow, Personal Spending data came out better than expected at 8:30am.
Paul Manafort, a Trump bro, is being asked to turn himself in to the Feds. I am not sure about what. I am not a news guy, especially before my morning covfefe.
Also on the economic calendar today we have a 3- and 6-month T-bill auction at 11:30am and a somewhat rare ‘cash management’ bill being auctioned at 1pm.
Last week we drifted, then sold off Thursday, formed an excess low, then trended higher. The Dow and Russell just sort of marked time during all of this. The performance of each major index from last week is shown below:
The real story is the NASDAQ. On Friday it opened pro gap up then trended higher all day. Huge rally.
Heading into today my primary expectation was for a move to close the overnight gap then take out overnight high 6223.25. That is complete.
For the rest of the morning my primary expectation is for the NASDAQ to drift sideways, finding balance above 6208.
Hypo 2 we continue discovering higher prices. Look for sellers way up at 6263.75.
Hypo 3 sellers gain traction and we trade down to 6181.25.
Levels:
