Nasdaq futures are trading approximately at 19,450, close to today’s VWAP of 19,440. The order flow indicates some bullish tendencies, suggesting a key level at 19,460 which needs to be sustained for a bullish outlook.
A breakdown below 19,407 may indicate bearish pressure, with profit targets set at 19,359, 19,326, and 19,292. Conversely, bullish trades above 19,460 target 19,480, 19,518, and up to 19,770.
Impact Of The CPI Report
The upcoming CPI report could introduce volatility, emphasising the importance of risk management. Traders are advised to take partial profits at significant levels and expect potential movements of 100–200 points.
The market presently hovers near today’s volume-weighted average price, reinforcing the idea that many positions remain balanced. The order flow reveals a slight leaning towards buying pressure, yet this support must hold near 19,460 to maintain momentum. If it does, continuing higher becomes more probable, particularly towards the next price objectives.
However, when prices cannot hold key support, sellers often step in, targeting lower levels. A move beneath 19,407 would likely fuel such momentum, increasing the likelihood of testing support around 19,359 and beyond. These levels aren’t arbitrary; they represent areas with previous buying interest, where profit-taking or renewed demand could emerge.
Beyond technical movements, external factors need our attention. The impending CPI release creates a possible catalyst for volatility. Economic data of this nature often shifts sentiment rapidly, triggering both stop losses and fresh entries, pushing price swings beyond typical expectations.
Risk Management Strategies
Risk strategies must reflect this environment. Locking in gains at predefined targets ensures exposure remains controlled, especially with anticipated 100–200 point fluctuations. Positions should be adjusted accordingly, considering how swiftly sentiment can change after the data is released. The focus remains on adaptability—reacting not just to price levels but also to how participants behave around them.
