NASDAQ futures are coming into Monday gap down after an overnight session featuring extreme range and volume. Price drove lower Sunday afternoon when the Globex markets opened for trade, eventually working down into the April 22nd range (two Wednesday’s back) before a responsive bid stepped in. After buyers worked back into last Friday’s range, we spent the rest of the session in balance. As we approach cash open, price is hovering just below Friday’s low.
On the economic calendar today we have factory orders at 10am followed by 3- and 6-month T-bill auctions at 11:30am.
Last week kicked off with a gap up. Monday was choppy. Tuesday was trend down. Wednesday trend up. Thursday choppy at the highs, Friday we went back down to weekly lows. Throughout the week the Russell 2000 demonstrated relative strength. The last week performance of each major index is shown below:
On Friday the NASDAQ printed a double distribution trend down. The day began with a gap down below the prior two sessions’ ranges. Buyer worked into the overnight inventory early on but were unable to reclaim the Friday low. Instead sellers stepped in and reversed early progress made by buyers and drove lower, trading down into the lower quadrant of Tuesday’s range before settling into a balance along the lows. We ended the week near weekly lows.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 8716.75. Look for sellers up at 8728 and two way trade to ensue.
Hypo 2 sellers active ahead of 8681 setting up a gap-and-go lower, down through overnight low 8556.25. Look for buyers down at 8527 and two way trade to ensue.
Hypo 3 stronger sellers tag 8485.25 before two way trade ensues.
Volume profiles, gaps and measured moves:
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