Nasdaq is trading at $23,437, down 0.25% from yesterday. After peaking at $24,068.50 on August 13, it fell 4.32% to $23,035, then bounced back to $23,650. The current price is below an important pivot area from July. For today’s Nasdaq 100 futures, the Decision Range is set between $23,445 and $23,480. A bearish trend may happen below $23,463, while a bullish trend could take hold above $23,513. Traders can utilize micro contracts for smaller trades since one MNQ point is 1/10th of the E-mini dollar value.

Bearish and Bullish Targets

If prices stay below the Decision Range, the market is likely to decline. Initial bearish targets are $23,417, $23,400, and $23,374. Further targets to watch are $23,312, $23,276, $23,226, and $23,123. It’s wise for short positions to not extend beyond $23,482; failing to stay below $23,513 could signal a shift to bullish trading. If prices hold above $23,513, potential bullish targets include $23,531, $23,543, $23,575, $23,665, and $23,695. A drop below $23,445 would cancel the bullish trend. Traders should manage risk carefully and take partial profits at key levels. TradeCompass can support decision-making but traders must act independently. Since hitting an all-time high of over 24,000 on August 13, 2025, the Nasdaq has pulled back, and we now focus on the key pivot zone around $23,450. The current trend feels bearish as long as we stay below this mark, indicating the market is searching for its next major driver. The upcoming Federal Reserve’s Jackson Hole symposium later this week should provide guidance on interest rates, which will be crucial as recent economic data has created uncertainty. The Fed’s messages will shape market direction in the weeks ahead, explaining the range-bound trading since the pullback.

Economic Indicators and Market Strategies

The July 2025 Consumer Price Index (CPI) was 3.4%, offering a slight relief but still showing inflation is stubbornly above the Fed’s 2% target. When combined with a slowing Q2 2025 GDP growth of 1.8%, the information gives the Federal Reserve reasons to consider various actions. For derivative traders, it’s essential to prepare for substantial movements as the market chooses its path. If the news pushes the market down and we break below $23,400 decisively, traders might position for a deeper correction, targeting a retest of the recent lows around $23,000. Buying put options with September expirations or starting short futures positions would be direct strategies in this case. On the other hand, if encouraging remarks help the market reclaim the $23,513 level strongly, the uptrend might restart. A sustained move above this point would make call options or long futures positions more appealing, aiming first for the $23,700 resistance before attempting the 24,000 all-time high. As we approach September, we can expect increased volatility regardless of whether the market rises or falls. Historically, September has been a weak month for stocks, with the S&P 500 averaging declines since 1950. Strategies that profit from price swings, like straddles, may work well. Currently, with the VIX at a relatively low 15.2, buying options is not very costly, making it a favorable time to define risk through derivatives. Consider purchasing puts to protect long stock portfolios or using debit spreads to speculate on upcoming moves with limited downside risk. Create your live VT Markets account and start trading now.

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