NASDAQ futures are coming into Monday pro gap down for the third consecutive week after an overnight session featuring extreme range and volume. Price was balanced until about 4am (again) when sellers stepped in and drove price lower. As we approach cash open price is trading inside of last Wednesday’s lower quadrant.
On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am.
Last week began with a big gap down into Monday, as did the week prior. Last week we saw weakness through Monday then buyers began to auction higher Tuesday and through Thursday afternoon. Then sellers stepped back in. Overall, choppy volatility. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a neutral extreme down. The day began with a gap down and after a brief two-way auction price worked higher to close the overnight gap and tag the Thursday naked VPOC before sellers returned. We chopped through most of the afternoon before sellers drove back down to the lows near the end of the session.
Heading into today my primary expectation is for sellers to gap-and-go lower, trading down to 7334.50 before two way trade ensues.
Hypo 2 stronger sellers take us down to tag the 7300 century mark.
Hypo 3 buyers work into the overnight inventory and close the gap up to 7511.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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