The S&P 500 and Nasdaq saw sharp intraday swings. Prices tried to drop but stayed capped in the QQQ 606 and 601 zones. US inflation data due today is expected to set the market tone.
The US dollar struggled to move higher during the session. The main trading focus for the day was the Nasdaq and gold.
Nasdaq Range And Inflation Focus
The S&P 500 and Nasdaq are attempting a strong reversal, with heavy intraday volatility. The latest January CPI report came in hotter than expected at 2.9%, which has acted as a near-term ceiling for the market. This has kept the QQQ ETF stuck between 601 support and 606 resistance.
For derivatives traders, this setup may favor strategies designed for a range-bound market or a potential move lower. The CBOE Volatility Index (VIX) has climbed back above 18 from the late-2025 lows. With strong resistance overhead, selling call spreads above key Nasdaq resistance may be attractive. This approach collects premium while the market struggles to pick a direction.
The US dollar’s failure to rally in the face of sticky inflation is an important signal. Ongoing dollar weakness supports precious metals and could help drive a breakout in gold. Watch for gold futures to break and hold above $2,550 per ounce in the coming weeks.
Oil Setup Into March
Oil is also showing fresh strength. Supported by a weaker dollar and renewed supply discipline from OPEC+, WTI crude has pushed back above $90 a barrel. This could make call options on major energy stocks or energy ETFs a possible way to capture upside into March.
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