NASDAQ Futures Update: Key Level in Focus
NASDAQ futures are currently trading around 21,500, with the Point of Control (POC) for today’s session at 21,510.
What is the Point of Control (POC)?
The Point of Control represents the price level where the highest volume of contracts has been traded during the session. It serves as a key reference point for market participants, often acting as a magnet for price action and a pivot zone for future moves.
What Does It Mean if Price Moves Below the POC?
- Bearish Signal: If NASDAQ futures sustain below 21,510, it may indicate that sellers are gaining control, potentially leading to a further decline toward lower support levels.
- Liquidity Check: Sometimes, price briefly dips below the POC before bouncing back, as traders test for additional liquidity.
- Trend Confirmation: If price continues trading under the POC with increasing sell volume, it reinforces bearish momentum. However, if it quickly reclaims the level, buyers might still be in control.
Traders will be closely watching how price behaves relative to 21,510 to assess whether this is a short-term pullback or the start of a larger directional move.