NASDAQ futures are coming into a busy week of tech earnings with a slight gap up after an overnight session featuring elevated volume and extreme range. Price was balanced overnight, balancing along the Friday midpoint. As we approach cash open price is hovering about +20 points above the Friday midpoint.
On the economic calendar today we have 3- and 6-month T-bill auctions at 11:30am.
After the bell major NASDAQ component Facebook is set to report earnings.
Last week saw equity prices trend up Monday and then a continuation rally into Tuesday. The rest of the week was choppy along the weekly high.
The last week performance of each major index is shown below:
On Friday the NASDAQ printed a normal variation down. The day began with a slight gap down in range. Buyers resolved the gap after a brief open two-way auction and worked a bit above it before finding responsive sellers who worked price down to the Thursday midpoint. Buyers defended the mid setting up a second push higher, a bit beyond the initial morning push. However this move stalled before 10:30am and before taking out the Thursday high. Sellers quickly regained the midpoint and then became initiative off the mid, pressing into an early range extension down. These sellers briefly took out the Tuesday-Thursday lows, poking into the Monday conviction range before buyers stepped in and worked price back to the mid. Sellers defended the mid twice and we ended the week chopping along the bottom-side of it.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 15,336. Look for buyers down at 15,300 and for two way trade to ensue.
Hypo 2 buyers to gap and go higher, trading up 15,438 before two way trade ensues.
Hypo 3 stronger buyers tag 15,500 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
