Markets were closed Monday in observation of Dr. Martin Luther King, Jr. day). The NASDAQ is coming into the holiday shortened week pro gap up after an overnight session featuring extreme volume and elevated range. Price worked higher overnight, nearly uninterrupted, and as we approach cash open prices are at record highs.
The economic calendar is light today. We have US Treasury activity only. They are auctioning off a 4-week T-bill at 11:30am. Also a 3- and 6-month T-bill at 11:30am.
Last week we balanced early in the week then rallied into the weekend. The last week performance is each major index is shown below:
On Friday the NASDAQ printed a double distribution trend up. The day began with a strong drive higher after opening flat. Then buyers became initiative inthe afternoon, continuing to press the market higher into the Friday close.
Heading into today my primary expectation is for sellers to work into the overnight inventory. Look for buyers down at 6788.25 and two way trade to ensue.
Hypo 2 gap-and-drive higher. Look for trending action up through overnight high 6819.25. Upside target is 6830.
Hypo 3 stronger sellers press harder, down through overnight low 6776 then continue to close the weekend gap fill down to 6765.50.
Levels:
Volume profiles, gaps, and measured moves:
