NASDAQ futures are coming into Monday gap up after an overnight session featuring elevated volume on normal range. Price worked higher overnight after going gap up into the globex session. The market stalled out and balanced ahead of the open gap from 11/7/18, and as we approach cash open, price is hovering in the 11/7 range.
On the economic calendar today we have construction spending at 10am followed by 3- and 6-month T-bill auctions at 11:30am.
Last week also started gap up across all major indices. Then we faded lower through Wednesday morning before rallying back up to the weekly highs by the end of the week. The last week performance of every major index is shown below:
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7206.25 to close the gap up at 7219 before two way trade ensues.
Hypo 2 buyers sustain trade above 7222.75 setting up a trend up. Look to target the open gap at 7313 before two way trade ensues.
Hypo 3 sellers work into the overnight inventory and take out overnight low 7167. Sellers continue lower, to close the overnight gap at 7156. Look for buyers down at 7151 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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