Nasdaq currently trades at $23,437, a decrease of 0.25% from yesterday. Following a high on August 13 at $24,068.50, the Nasdaq experienced a 4.32% pullback to $23,035, then a two-day bounce to $23,650. The price is now below a key July pivot zone.
For today’s Nasdaq 100 futures, the Decision Range is between $23,445 and $23,480. A bearish trend is observed below $23,463, while a bullish trend could emerge above $23,513. Traders can use micro contracts for tighter sizing, as one MNQ point equals 1/10th of the E-mini dollar value.
Bearish And Bullish Targets
If prices remain below the Decision Range, the session is likely bearish. Initial bearish targets are $23,417, $23,400, and $23,374, with further targets at $23,312, $23,276, $23,226, and $23,123. Short positions should not extend beyond $23,482, and failure to stay below $23,513 suggests a bullish shift.
If prices sustain above $23,513, potential bullish targets include $23,531, $23,543, $23,575, $23,665, and $23,695. A break below $23,445 negates the bullish trend. Traders should manage risk appropriately and take partial profits at strategic levels. TradeCompass aids decision-making but requires traders to act independently.
After reaching an all-time high of over 24,000 on August 13th, 2025, we have seen the Nasdaq pull back and are now watching a key pivot zone around $23,450. The immediate trend feels bearish as long as we remain below this area. This hesitation suggests the market is looking for its next major catalyst.
That catalyst will likely come from the Federal Reserve’s Jackson Hole symposium later this week, where we are all waiting for guidance on interest rates. Recent economic data has created uncertainty, making the Fed’s tone critical for market direction over the next few weeks. This is why the market has been range-bound since the pullback.
Economic Indicators And Market Strategies
The July 2025 Consumer Price Index (CPI) report came in at 3.4%, which was a slight relief but still proves inflation is sticky and well above the Fed’s 2% target. Combined with slowing Q2 2025 GDP growth of 1.8%, the data gives the central bank reasons to lean in either direction. For derivative traders, this means we should be prepared for a significant move once the market picks a direction.
If the market interprets the news as bearish and we break decisively below $23,400, traders could position for a deeper correction. We would be looking for a retest of the recent lows around $23,000. Buying put options with September expirations or initiating short futures positions would be a direct way to play this scenario.
Conversely, if reassuring commentary helps the market reclaim the $23,513 level with conviction, the uptrend could resume. A sustained move above this point would make call options or long futures positions attractive. The initial target would be the $23,700 resistance zone before a potential attempt at the 24,000 all-time high.
Heading into September, we should anticipate an increase in volatility regardless of the direction. Historically, September is a weak month for equities, with the S&P 500 averaging a decline since 1950. Options strategies that benefit from price swings, such as straddles, could be effective.
With the VIX currently sitting at a relatively low 15.2, buying options is not overly expensive. This makes it a good environment for defining risk using derivatives. Consider purchasing puts to hedge existing long stock portfolios or using debit spreads to speculate on the next move with a capped downside.
