The S&P 500 and Nasdaq saw intraday volatility, with attempts to move lower while remaining capped within the QQQ 606 and 601 areas. US inflation data due today is expected to guide market direction.
The US dollar struggled to rise during the session. The stated trading focus for the day was on the Nasdaq and gold.
Nasdaq Range And Inflation Focus
We’re seeing a smashing reversal attempt in the S&P 500 and Nasdaq, characterized by significant intraday volatility. The recent January CPI report, which came in hotter than expected at 2.9%, has put a ceiling on the market for now. This price action has kept the QQQ ETF trapped between the 601 support and 606 resistance levels.
For derivative traders, this environment points toward strategies that benefit from range-bound action or a potential downturn. With the CBOE Volatility Index (VIX) having climbed back above 18 from the lows we saw in late 2025, selling call spreads above heavy resistance in the Nasdaq could be a favorable play. This allows you to collect premium while the market struggles to find direction.
The US dollar’s inability to stage a meaningful rally, even on the back of persistent inflation, is a critical tell. This continued weakness is a strong tailwind for precious metals, setting the stage for a potential breakout in gold. Watch for gold futures to make a decisive move above the $2,550 per ounce mark in the coming weeks.
Oil Setup Into March
We also can’t forget oil, which is showing renewed signs of life. Fueled by the soft dollar and fresh supply discipline from OPEC+, WTI crude has pushed firmly back above $90 a barrel. This suggests that buying call options on major energy stocks or ETFs could provide significant upside as we head into March.
