NASDAQ futures are coming into the first week of June options being front month down -90 after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along last Friday’s midpoint until about 6am New York when sellers poked price a bit lower. As we approach cash open, price is hovering near last Friday’s lows but has not yet exceeded them.
On the economic calendar today we have 13- and 26-week T-bill auctions at 11:30am.
Last week featured a steady campaign higher with buyers maintaining control of the auction all week across all major indices except the Russell. The Russell was bearish divergent all week. The last week performance of all four major indices is shown below:
On Friday the NASDAQ printed a normal variation down. The day began with a gap up, with price trading a levels untouched since March 5th. The high print actually took place during Globex trade late Thursday evening. It is statistically uncommon for swing high/lows to print during non-cash hours. After a brief two-way auction at the open, much of Friday was spent working lower, eventually closing the overnight gap and pushing range extension down. Eventually we tagged the Thursday midpoint which discovered a strong responsive bid. We ramped back up beyond the midpoint into the weekend.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 8808.25. From there we continue higher, up through overnight high 8837.25 setting up a move to 8883.50 before two way trade ensues.
Hypo two sellers actively defend 8742.25 early on setting up a move down through overnight low 8696.25. Look for buyers just below overnight low and two way trade to ensue.
Hypo 3 stronger sellers trad down to 8633.50 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
