NASDAQ futures are coming into Monday gap up after an overnight session featuring elevated range and volume. Price worked higher overnight, trading up near the record high print before settling into balance. As we approach cash open price is hovering well above last week’s high and about 25 point away from record highs.
The move overnight is being attributed (at least partially) to NAFTA coming to a new agreement amid the ongoing trade wars.
On the economic agenda today we have ISM manufacturing/employment at 10am followed by a 3- and 6-month T-bill auction at 11:30am.
Last week started off with selling across all major indices. While the NASDAQ found a floor by late Monday and rallied through the rest of the week, the other indices marked time and worked sideways. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a normal variation up. The day began with a gap down and two way auction. Buyers eventually became initiative and closed the overnight gap and took out overnight high by a few ticks before we traded back to the daily mean. There was a small ramp into the closing bell. Ultimately it was an inside day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and take out overnight low 7670.50 then continue lower to close the gap down to 7663.75. Look for buyers here and two way trade to ensues.
Hypo 2 gap and go higher, trade up through overnight high 7719.75 and probe the globex high 7726. Open air. Look for sellers up at the weekly ATR band high 7754.25 and two way trade to ensue.
Hypo 3 stronger sellers trade down to 7644 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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