I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,919 Blog Posts

Gap down in range ;-) here is Monday trading plan

NASDAQ futures are coming into the week with a slight gap down after an overnight session featuring elevated range and volume. price was balanced overnight, first poking up above the Friday high then descending down through most of the Friday range. As we approach cash open price is hovering in the lower quadrant of last Friday’s range.

On the economic calendar today we ahve 3- and 6-month T-bill auctions at 11:30am.

Last week we saw a choppy Monday. Then a rally Tuesday. Afternoon sellers Wedneday. And then a strong rally into the weekend. NASDAQ price action lagged a bit, despite out performing on a percentage basis. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation up. The day began with a gap up just a bit beyond Thursday range. Sellers quickly drove into the open and resolved the gap and continued lower, briefly probing below the Thursday midpoint before popping back above it and chopping along the mid for a few hours. After lunch buyers worked up and away from the mid but stalled before going range extension up. Instead we threw back to the mid once more, buyers defended, and the late-day ramp ended up putting us into an range extension up. We ended near the highs.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 14,019. From here buyers continue higher, taking out overnight high 14,052.25 before two way trade ensues.

Hypo 2 sellers probe below Friday low 13,953.75 setting up a run down to 13,900. Look for buyers just below at 13,875 and for two way trade to ensue.

Hypo 3 stronger sellers tag 13,831 before two way trade ensues.


Volume profiles, gaps and measured moves:

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