NASDAQ futures are coming into the week gap up beyond Friday’s range after an overnight session featuring normal volume and extreme range. Price has steadily rotated higher since Globex trade opened Sunday evening. The unidirectional rotation higher took out the Friday high around 7am, and as we approach cash open price is hovering in the upper quadrant of last Thursday’s range.
On the economic calendar today we have housing market index at 10am followed by 3- and 6-month T-bill auctions at 11:30am.
Last week essentially marked time across major U.S. indices. A bit of selling early in the week, a bit of buying late in the week. The S&P was divergent strong throughout it. Here is the last week performance of each major index:
On Friday the NASDAQ printed a normal variation down. The day began with a gap up in range. There was an open two-way auction off the open which served to fill the overnight gap, then sellers continued lower, taking out the Thursday low and briefly pressing range extension down just after 10:30am. That would be all the seller control for the rest of the week because shortly after going range extension down responsive buyers stepped in and worked price back up through the daily midpoint. We walked back down over the midpoint late in the afternoon but never made a new low of day. Instead we ramped back to the midpoint near settlement.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 11,233.25 on their way to probing beyond all-time high 11,266. Look for sellers up at 11,300 and two way trade to ensues.
Hypo 2 stronger buyers trade up to 11,324.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 11,130.25 setting up a tag of 11,093 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
