TradeCompass Principles

NASDAQ futures are currently at 23,652, right at the tradeCompass bearish threshold. If this level breaks, we could see a drop with targets at 23,632, 23,615, 23,589, 23,562, and 23,520. There are also swing targets at 23,471 and 23,307. On the bullish side, if prices rise above 23,711, we have targets at 23,755, 23,775, 23,811, and a swing extension to 23,900. NVIDIA recently reported earnings, causing their shares to drop 5.5% after hours. Futures have bounced back slightly, making the U.S. market open very important. The tradeCompass approach looks beyond headlines to focus on clear thresholds. Profit targets align with historical Value Area Highs, Point of Control, and VWAP for partial profit-taking. The tradeCompass principles use clear thresholds to guide trading decisions and manage bias. Traders can secure profits by adjusting stop-loss orders to the entry point after reaching targets. The Value Area and VWAP are crucial reference points. Traders should also focus on risk assessment and their own trading strategies. This analysis is not financial advice. We are at a pivotal moment for the NASDAQ, with futures right at the bearish line of 23,650. The market is processing NVIDIA’s decline, which occurred despite strong earnings due to cautious guidance. The reactions of large institutions when the U.S. market opens will be significant for the coming days. If prices stay below 23,650, it indicates that sellers are in control, likely using the NVIDIA news to take profits. This aligns with the July 2025 inflation report, which was stubbornly high at 3.4% and has added concern about the Fed’s next steps. If we see a decline, then the first logical profit-taking points will be at 23,632 and 23,615. For traders taking short positions, risk management is crucial, especially since the CBOE Volatility Index (VIX) has risen to 17.5, indicating increased uncertainty. It’s wise to move stop-loss orders to entry after hitting the second target at 23,615. This strategy preserves capital in a volatile market where sharp reversals can occur unexpectedly.

Market Reaction To NVIDIA News

Conversely, if the market starts climbing above 23,711, it indicates that buyers are stepping in and absorbing selling pressure. In this case, the NVIDIA dip may be viewed as a buying opportunity, similar to previous pullbacks by major tech companies throughout 2024. A rise above this level opens up bullish targets like 23,755 and 23,775. This uncertain price movement makes buying puts or calls more expensive due to increased implied volatility. Derivative traders should consider using credit or debit spreads to manage risk and lower entry costs in the coming weeks. A bearish trader might sell a call spread above the highs, while a bullish trader could sell a put spread below recent support. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now