NASDAQ futures are coming into the first trading day of 2020 gap up after an overnight session featuring extreme range and volume. The overnight session featured a slow, unidirectional move higher, with price rallying up near all-time record highs but stalling just before taking them out. As we approach cash open, price is hovering near the highs.
On the economic calendar today we have manufacturing PMI at 9:45am followed by 4- and 8-week T-bill auctions at 11:30am.
On the last trading day of 2019, New Year’s eve, the NASDAQ printed a normal variation up. The day began with a gap down inside range that buyers quickly resolved with a drive higher on the open. From there price rotated back down though the daily midpoint before chopping along it for many hours. Then we ramped higher into the close, making a new daily high and closing near session high.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 8831 to tag 8842.25 before two way trade ensues.
Hypo 2 stronger buyers trade up to 8900 before two way trade ensues.
Hypo 3 sellers work into the overnight inventory and take out overnight low 8769.50 on their way to close the 2019 open gap down to 8766. Look for buyers down at 8748 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
