NASDAQ futures are coming into the final week of October gap down after an overnight session featuring elevated volume on extreme range. Price opened gap down Sunday evening, rotating lower, bouncing once, then rotating lower a second time—taking out the Friday low. As we approach cash open, price is hovering inside Friday’s range, along the low.
On the economic calendar today we have new home sales at 10am followed by 3- and 6-month T-bill auctions at 11:30am.
Last week featured a big sell Monday. Downward pressure through Thursday morning then a minor relief rally into the weekend.
The last week performance of each major index is shown below:
On Friday the NASDAQ printed a neutral extreme up. The day began with a gap up in range that sellers drove down into on the open, quickly resolving the gap and continuing lower into the bottom quadrant of Thursday’s range. Price was choppy through about noon, pressing range extension down along the way but never taking out the Thursday low. The afternoon was all buyers. A steady rotation up eventually recovered the early selling and a new high of day way made near the close. Closed near the highs.
Neutral extreme up.
Heading into today my primary expectation is for buyers to work into the overnight inventory and take out overnight high 11,642 on the way to closing the overnight gap at 11,661. Look for sellers up at 11,700 and for two way trade to ensue.
Hypo 2 sellers take out overnight low 11,543 and tag 11,500 before two way trade ensues.
Hypo 3 stronger buyers trade up to 11,800 before two way trade ensues.
Volume profiles, gaps and measured moves:
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