NASDAQ futures are coming into Monday flat after an overnight session featuring normal range on elevated volume. Price worked higher overnight, probing up near Thursday highs before settling into balance. As we approach cash open, price is hovering at the Friday high.
On the economic calendar today we have the Dallas Fed manufacturing index at 10:30am followed by 3- and 6-month T-bill auctions at 11:30am.
After the bell, Google parent company Alphabet is set to report earnings. This is a NASDAQ moving report.
Last week began with a gap down then strength through Monday and into Tuesday where we saw conviction buying which pressed the NASDAQ to new record highs. The other indices haven’t made new highs yet alongside the NASDAQ, and during the second half of the week, while the NASDAQ mostly marked time, there was a bit more weakness in the other indices.
On Friday the NASDAQ printed an odd-looking normal variation up. The day began with a gap up in range that sellers pressed into. The early selling drive pressed down into the conviction buying from Tuesday, and by 10am responsive buyers (responsive relative to the Friday open, initiative relative to the Tuesday conviction day) stepped in and began working price higher. Price worked higher for the erst of the day, eventually closing the week out at session high and just a few points off of all time high.
Heading into today my primary expectation is for sellers to press down into the Friday buying, look for price to trade down to 7820 before two way trade ensues.
Hypo 2 buyers work up through overnight high 7859.75 setting up a move to target 7870 before two way trade ensues.
Hypo 3 stronger sellers trade down and tag the 7800 century mark. Look for buyers down at 7792 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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