The Nasdaq’s trading session on 24/01/25 highlighted the interaction between key technical levels and market dynamics. WAP levels shaped price movements and the overall session’s trends.
4-Hour Chart: Weekly VWAP as Late-Session Support
On the 4-hour chart, the Nasdaq faced early resistance at the NYC IB high before retracing to the weekly VWAP (white line). The price’s failure to breach the NYC IB high early in the session marked a pivotal turning point, as sellers gained momentum, and the market trended lower.
By the session’s close, the weekly VWAP emerged as a key support level, influencing late-session sentiment. The interaction with the weekly VWAP highlights its importance in influencing market behaviour, especially during end of day sell-offs.
15-Minute Chart: Intraday Price Movements
The 15-minute chart provides a closer look at how intraday price action unfolded. Early in the session, the Nasdaq failed to break and hold above the overnight high VWAP (green line), which acted as a strong resistance level. This rejection set a bearish tone for the day, with sellers controlling the market until the final hours.
As the session progressed, the price consolidated near the weekly VWAP, reflecting indecision among traders. This consolidation signals a possible shift in sentiment, offering clues for the next trading session.
Economic Data Overview Of The Trading Session
- U.S. Composite PMI: Dropped to 52.4, down from 55.4 in December, indicating slower economic growth.
- Manufacturing PMI: edged up to 50.1, signalling modest expansion.
- Services PMI: fell to 52.8, marking the slowest growth in nine months.
Source: S&P Global PMI Report investors.com Reuters
Into The Next Session
The weekly VWAP remains the key level to watch heading into the next session. If the price consolidates above this level, buyers may regain momentum, pushing the Nasdaq toward resistance near 22,000. For the bears, a breakdown below the weekly VWAP could trigger further selling, with support levels near 21,850 as the next potential target to test. For VWAP traders, this reinforces the importance of closely monitoring higher timeframe VWAP levels for directional cues.
Lessons Learned
The session underscored the value of VWAP levels in providing clarity for traders. The rejection at the NYC IB high early in the day offered an immediate signal of bearish momentum, while the late-session test of the weekly VWAP highlighted its role as a key support zone. The impact of macroeconomic data further illustrated how external factors can amplify market volatility, making it critical for traders to stay informed of major releases.
