NASDAQ futures are coming into the second week of November flat after an overnight session featuring extreme range on elevated volume. Price was balanced overnight, balancing along the lower half of Friday’s range after briefly probing below the Friday range for about two minutes Sunday evening. As we approach cash open price is hovering just below the Friday midpoint.
On the economic calendar today we have Fed Chairman Powell speaking at 10:30am, 3- and 6-month T-bill auctions at 11:30am and then a 3-year note auction at 1pm.
Last week saw the Russell 2000 break out and rally Monday. Other indices sort of chopped higher alongside the small cap index through Wednesday. Then we rallied across the board after the Wednesday afternoon FOMC announcement. Rally continued through mid-day Friday. Then some selling/profit taking knocked price off the high into the weekend.
On Friday the NASDAQ printed a normal variation down. The day began with a gap up beyond the Thursday range. Sellers were unable to reclaim the Thursday range early on. Instead price chopped in a tight range along all-time highs. Around noon bulls made a go at the highs but stalled one tick shy. Sellers pounced and pushed into a range extension down, effectively reclaiming the Thursday range and filling the overnight gap. Buyers stablized just below the Thursday volume point of control and price chopped along the bottom-side of the mid into the close.
Heading into today my primary expectation is for buyers to press up to 16,403.75 before two way trade ensues.
Hypo 2 stronger buyers take out 16,417.25 early on and sustain trade above it setting up a run on the highs 16,448.50.
Hypo 3 sellers press down through overnight low 16,256 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
