Nasdaq futures shifted from the Asian session through London and into the New York opening, rising above the intraday pivot. This came after a bounce from the daily central pivot in the previous session. The recovery in Asia was supported by the January 6th Point of Control, which helped the transition into London. This enabled prices to reclaim the central pivot and enter the upper-structure support band, setting the stage for New York’s opening move toward the upper resistance zone.

Price Action During New York Session

In the New York session, prices are testing their ability to stay above this higher band. If they hold above this level, it could lead to a new expansion phase. If not, attention will return to the central pivot, which serves as the market’s midpoint. The video explains how predefined structures guide Nasdaq futures movements. A structure-first approach evaluates the market environment before price actions take place. Structure provides context, while price gives confirmation. The Nasdaq is currently at a crucial upper resistance band, presenting a clear decision point. If prices hold above this level, it signals the start of a new upward phase. However, failure to do so will shift our focus back to the central pivot, indicating the potential for more range-bound trading.

Influence Of Economic Indicators

This technical test coincides with the latest CPI report, which revealed core inflation stubbornly at 3.1%. As a result, futures markets now predict only a 40% chance of a Federal Reserve rate cut in March, a drop from the 75% chance seen at the end of 2025. This economic uncertainty is fueling the struggle between buyers and sellers at this key technical level. For traders looking for a breakout, holding above this upper structure could be a chance to establish long positions, such as buying February call options. With major tech companies set to report their Q4 2025 earnings next week, positive guidance could support a sustained upward move. We’re waiting for confirmation that the market accepts these higher prices before making commitments. On the other hand, if the market rejects this upper level, it indicates that sellers are gaining control and that the recent rally may be losing momentum. In this case, we might consider initiating bearish positions, like buying put spreads targeting the central pivot as an initial goal. This outlook would be strengthened if upcoming retail sales data shows a drop in consumer spending. Our primary strategy for the near future is to allow price movements to provide confirmation, as the structure clearly outlines key levels. It’s wiser to wait and see if the market accepts or rejects this upper band rather than trying to predict what will happen next. The elevated VIX, currently at around 14.5, suggests that options premiums can be used to create trades that define risk, regardless of the market’s ultimate direction. Create your live VT Markets account and start trading now.

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