Markets are entering September with a risk-off sentiment, indicated by weakness in NVIDIA, Dell, Bitcoin, and Asian equities. Nasdaq futures also reflect this bearish tone despite the closure of the US stock market for Labor Day.

Order flow analysis shows a shift in momentum, with sellers dominating and pushing cumulative delta into negative figures. Nasdaq futures have currently tested and held slightly above the 23,417 Value Area Low, a critical pivot. The next move depends on whether sellers continue toward 23,338 or buyers push above the 23,460–23,479 resistance zone.

Crypto Market Decline

Crypto markets support this risk-off environment, as Bitcoin futures are down, trading at 107,840 with a decrease of 935 points, further contributing to global market caution. Nvidia and Dell’s stock performance reflect disappointment, with Nvidia closing 4.5% lower and Dell shares dropping more than 9% post-earnings.

Asian markets also follow Wall Street’s tech selloff, with semiconductor and hardware shares declining. This situation affirms that Nasdaq futures’ weakness is part of a broader global trend rather than an isolated event. The bearish sentiment is underscored by the test of 23,417, with potential movements expected depending on the market conditions post-Labor Day.

With major tech names like NVIDIA and Dell showing weakness, and Bitcoin futures dipping, the market is signaling a clear risk-off attitude to start September. We’ve seen the VIX, a key fear gauge, recently climb above 20 to 21.5, reflecting rising uncertainty among investors. This nervousness is directly visible in the Nasdaq futures market, which is already trading lower.

Even with the cash market closed for Labor Day, we see sellers dominating the Nasdaq futures. Order flow data shows a collapse in cumulative delta to deep negative territory, a strong sign that buying pressure has vanished. This indicates that large players are positioning for a downturn when trading fully resumes on Tuesday.

Historical Patterns And Economic Concerns

This bearish sentiment aligns with historical patterns, as September has often been the weakest month of the year for equities since the 1950s. The recent August jobs report, which came in stronger than anticipated at 210,000 new jobs, adds to these concerns about a potentially more aggressive Federal Reserve. This historical and economic backdrop makes the current weakness feel more significant.

For derivative traders, the key pivot to watch is the 23,417 level in Nasdaq futures. A decisive break below this point would open the door to our next target at 23,338, making put options or short futures positions attractive. Any bounce that fails to hold above the 23,460-23,479 zone should be viewed as a potential opportunity to initiate new bearish positions.

We are not seeing this weakness in isolation, as it’s confirmed across different asset classes. Bitcoin has now slipped below its 50-day moving average, a technically bearish signal, while Asian markets opened the week lower. This broad-based selling pressure suggests the current move is not just a temporary dip but a more coordinated shift in global sentiment.

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