Nasdaq futures are lower heading into Monday’s trade. The 3-day holiday weekend came to an end with news that Greece citizens voted against the proposed referendum. The news sent US equity futures sharply lower when they opened yesterday evening. Since then we have printed an abnormal range, nearly 60 points, on abnormal volume. We’ve spent most of the session squeezing higher.
At 10 am we have ISM Non-Manufacturing Composite stats and looking forward we have FOMC minutes scheduled for release 2pm Wednesday.
We closed out last week churning inside of Monday’s big trend down range. The market overall showed signs of balance which, in a way, suggests participants were accepting prices lower. We’re heading into today within that range, but with a questionable globex swing low.
The chart looks like a giant crime scene, with 4 gaps littered across it. We’ll be opening right near the 6/30 gap, so that one will vanish leacing only the three overhead gaps.
Heading into today, my primary expectation is for buyers to push into the overnight inventory and work the gap fill higher. Look to take out overnight high 4402.75 then attempt a full gap fill up to 4428.25 but stall out around 4416.50. Sellers defend this area and two way trade ensues.
Hypo 2 buyers stall ahead of overnight high 4402.75 and we push down through 4381.75 setting up a liquidation down to test overnight low 4344.
Hypo 3 full gap fill up, trade through to 4428.25 early and continue to test 4434.50.