Summary:
- Nasdaq futures are surging to 23,765.50 (+269.25 / +1.15%) as the index builds on this week’s breakout momentum.
- The rally began earlier in the week from Weekly Buy 1 (23,101), where demand absorbed selling pressure, forming a cycle trough.
- On the annual 360-day trading cycle, the Nasdaq is entering a high-volatility phase that typically occurs 60–75 days before the annual cycle peak
Current Market Structure
are surging to 23,765.50 (+269.25 / +1.15%) as the index builds on this week’s breakout momentum. The market is now trading well above both Daily VC PMI (23,661) and Weekly VC PMI (23,435), signaling aligned bullish conditions in both short-term and intermediate-term trends.
The rally began earlier in the week from Weekly Buy 1 (23,101), where demand absorbed selling pressure, forming a cycle trough. This set the stage for a strong advance into Friday, with price now pressing into Daily Sell 1 (23,793) and approaching Daily Sell 2 (23,829).
Gann Time Cycles
From a Gann cycle perspective, the current upswing is in the second half of a short-term 8-day trading cycle that began with Monday’s low. Historically, the exhibits a rhythm where these mini-cycles often lead to peak conditions by the 5th to 6th trading day from the low, which puts us in the prime zone for a temporary crest between August 11–12.
Longer-term, we are also in a 90-day secondary cycle expansion window that began in early June, meaning price action is operating within a broader bullish seasonal rhythm that tends to persist into mid-August before mean reversion pressures intensify.
Square of 9 Harmonics
Using the Square of 9 for harmonic projections, the recent low at 23,101 aligns with upward rotational targets at:
- 23,829 – near Daily Sell 2 (first harmonic resistance)
- 24,047 – Weekly Sell 1 (second harmonic resistance)
- 24,381 – Weekly Sell 2 (third harmonic resistance, high probability exhaustion level)
These harmonics also align with key Fibonacci extensions, reinforcing the 24,047–24,381 zone as the high-probability turning point should the rally continue without pause.
360-Day Cycle Context
On the annual 360-day trading cycle, the Nasdaq is entering a high-volatility phase that typically occurs 60–75 days before the annual cycle peak. Historical data shows this window often produces sharp rallies that can exhaust quickly, followed by corrective retracements of 3–8%.
- The current 360-day cycle began in late October 2024.
- This positions August 2025 as a pre-peak acceleration month, where overbought conditions can set up the final run before a broader market correction into late September or early October.
Strategic Takeaways
- Upside Targets: 23,829 → 24,047 → 24,381 (Gann/Square of 9 harmonics & VC PMI confluence)
- Cycle Peak Risk: Short-term cycle suggests potential high Aug 11–12; annual cycle suggests a broader peak window later in August.
- Pullback Triggers: Daily VC PMI (23,661) is first line of defense; failure here could test 23,394 (Daily Buy 1) and 23,101 (Weekly Buy 1).
- Tactical Bias: Maintain a buy-the-dip strategy until price exhausts near 24,047–24,381; then anticipate a mean reversion leg.
TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.