NASDAQ futures are coming into the first full week of Q3 gap up after an overnight session featuring elevated range and volume. Price worked higher overnight, slowly, working well up into the 06/21 liquidation day. As we approach cash open price is hovering beyond last Friday’s range and we are likely to begin the day out of balance, with higher time frame participants pushing each other around during the open.
The economic calendar is light today. At 11:30am the US Treasury will auction off 3- and 6-month T-bills. Then at 3pm we’ll hear the May reading of consumer credit (which is running high).
Last week was split in two by the American Independence day, which caused markets to close early Tuesday and remain closed Wednesday. Last week began gap down which was quickly bought-up, closing the gap and continuing to run higher. Tuesday opened gap up and faded the entire half day—moving lower. Wednesday closed. Thursday gap up. Sellers manage to close gap to the tick then buyers step in and rally the rest of the day. Friday trend up. All the while the Dow lagged. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a trend up. The day began with a gap up that managed to close during the opening auction before buyers drove higher and continued driving higher until reaching the open gap left behind on June 22nd. The market paused here for a few hours then another leg of buying carried us into the bell.
Heading into today my primary expectation is for a gap-and-go higher. Price works up to 7300 before two way trade ensues.
Hypo 2 stronger buyers trade up to the open gap at 7312. Stretch target is 7331.50.
Hypo 3 sellers work into the overnight inventory and close the gap down to 7232. Look for buyers down at 7200 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
