Bulls need to push the market above the 50% retracement level at 23,319.75. Key points to watch for potential entry are at 23,281, 23,255, and 23,228. Currently, NQ futures are trading sideways following a pullback, fluctuating between Micro 5 and Micro 4. We’re looking to find levels that could impact the London open, which might decide between a bullish move or a gradual downturn.

Key Levels And Targets

Significant levels to keep in mind are the 23,319.75 retracement, resistance at 23,350–23,368, and the 23,394 Point of Control. The high from yesterday was 23,421.25, which we can target for upside potential. Support levels are at Micro 4 (23,281), Micro 3 (23,255), and Micro 2 (23,228). For a bullish strategy, we aim to reclaim 23,319.75 on a 15-minute chart. The first target is 23,350–23,368, with additional targets at 23,394 and 23,421.25. Place a stop-loss below 23,300. If we fail to hold 23,319.75, bearish trading will take over, targeting below 23,228. The stop-loss would be set above 23,319.75. It’s essential to manage risks in both directions with a maximum of 1–2% risk per trade. Keep an eye on London’s economic announcements for potential price swings.

Market Dynamics And Economic Influence

The market is at a crucial decision point where bulls need to hold above the 23,319.75 retracement. The low readings of the CBOE Volatility Index (VIX) at around 12 indicate that market participants may be too complacent, which could lead to a sudden price shift. The highlighted micro pivots are ideal zones for planning trades as the market gets more dynamic. The bullish outlook is supported by recent inflation information—the U.S. Consumer Price Index recently came in at 3.3%, slightly lower than expected. This has increased speculation about a possible Federal Reserve interest rate cut later in the year, setting the stage for a breakout. If prices manage to stay above the retracement level, we can aim for the Point of Control at 23,394, benefiting from this positive sentiment. Conversely, the bearish perspective is backed by strong labor market data, with 272,000 new jobs added in May, exceeding predictions. This economic resilience endorses a cautious approach from officials like Powell, who focus on data before making policy changes. A significant rejection at resistance could lead to prices quickly falling below 23,228 if rate-cut expectations fade. This market behavior, a tight range following a pullback amid mixed economic signals, resembles trading conditions from late summer 2023 before a notable trend took shape. Traders can explore options like vertical spreads to seize directional moves while maintaining controlled risk. It’s vital to monitor economic updates during the London session, as any surprises could trigger a break from the current stalemate. Create your live VT Markets account and start trading now.

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