Nasdaq futures are holding inside a narrow range ahead of Nvidia's earnings, with 29,310 marking the bullish threshold and 29,200 the bearish one. A sustained break of either level would set the market's next direction once Nvidia reports after the close on August 26.
Nasdaq futures were trading near 29,258, almost in the middle of a 29,200-29,310 decision zone, as traders wait for Nvidia's results. The company reports after the US market close on August 26, and its results can quickly end the current balance.
Two gateways define the next move
A sustained move above 29,310 would activate a potential bull flag breakout. A sustained break below 29,200 would strengthen the bearish case instead. Either way, the pattern only counts as a bull flag once price breaks out and holds — a brief wick or the first crossing of either level is not enough.
Falling yields and oil ease the macro backdrop
The setup comes as oil has fallen sharply, reducing inflation pressure, and the 10-year Treasury yield has eased to around 4.63%, which makes expensive growth stocks such as Nvidia easier for investors to value. However, today's PCE inflation report comes before Nvidia earnings, and a hotter reading could push yields back up and make the market less forgiving of even good results, a dynamic tied to inflation expectations.
Wall Street sets a high bar for Nvidia
Expectations for Nvidia are extremely high. Wall Street is looking for roughly $92 billion of quarterly revenue. It expects around $104 billion for the following quarter. Options, meanwhile, are pricing a move of roughly 5% after earnings. As a result, Nvidia does not simply need to beat its numbers — investors will be asking whether its growth and guidance clear the bar already built into the stock.
Until either gateway breaks and holds, day traders may treat 29,200 and 29,310 as the edges of a range rather than fresh directional signals.
Source: InvestingLive
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