Following a sharp sell-off triggered by Google’s earnings miss, Nasdaq futures struggled through the Asian and European sessions as bearish momentum dominated price action. However, buyers stepped in at key support, leading to a strong recovery in the New York session. With price now consolidating above last week’s value area, the question is whether this breakout can hold.
Asian and European Session: Bearish Momentum Takes Hold
After Google’s earnings report, Nasdaq futures came under heavy selling pressure in the Asian session. Price initially hit an overnight high of 21,623 before sellers took control of price, driving the market lower. As the European session got underway, selling pressure continued, pushing price to a fresh session low of 21,429 after the London open.
For the second straight session, the monthly VWAP once again acted as a key support level, attracting buyers and halting bearish momentum. The bounce off this level set the stage for a recovery, as market participants reassessed value ahead of the U.S. open.
New York Session: Breakout and Reversal
The New York session opened with heightened volatility, as whipsaw price action reflected market participants jostling for position. Price initially failed to gain acceptance within yesterday’s New York value area, but sustained buying pressure eventually broke through this resistance, triggering a rally that pushed price through the overnight high and into last week’s value area high.
With price now trading over 80 points above the prior week’s value area, the focus shifts to whether buyers can maintain control. Holding above this zone could pave the way for further upside toward last week’s highs of 21,966, while a rejection back below may trigger another test of the 21,700s in search of fresh buyers.
