How to Trade ES & NQ Futures: Top Setups for July 1

by | Jul 1, 2025 | Market Insights

Hands pointing at a financial report on a clipboard with stock charts visible.

? Daily Outlook Report โ€“ July 1, 2025

For: ES (S&P 500 E-mini) & NQ (Nasdaq E-mini)


1. ? Market Overview

  • Overnight Action (Asia & Europe): Asia was muted, with NQ holding record levels after Fridayโ€™s strong close. European futures are modestly higher, reflecting renewed optimism on trade talks.
  • Key Macro/Geopolitical Drivers:
    • July 9 trade-deal deadline looms between the U.S., EU, and Chinaโ€”positive headlines helped Q2 close on a high note.
    • Geopolitical risks persist (Middle East tension, oil swings); investors positioning defensively for possible summer shocks.
  • Upcoming Events:
    • U.S. regional employment and ISM services this week; less likely to disrupt unless data surprises.
    • July 9: Key trade-deal deadlineโ€”potential volatility trigger.
  • Pre-market Sentiment:
    • VIX index ~16.3 โ€” low by historical standards.
    • VIX futures (July contract) slightly above spot, indicating mild volatility skew.
    • Futures show a modestly positive open: ES up ~+0.4%, NQ up ~+0.6% premarket.
  • Technical Context (Daily/4h):
    • Both ES and NQ have just cleared record highs into round-number territory.
    • Market structure remains bullish, but summer thinness and stretched structure warrant caution.

2. ? Technical Levels to Watch

ES:

  • Overnight High / Low: ~6240 / ~6230 (front month ESU25)
  • Globex Volume Profile: POC ~6230โ€“6235; VAH ~6245; VAL ~6225
  • Support: 6230 (overnight low), 6200
  • Resistance: 6245โ€“6250 round-number zone
  • Gaps: Small Q2 quarter-end gap around 6220โ€“6225

NQ:

  • Overnight High / Low: ~22,915 / ~22,810
  • Globex Volume Profile: POC ~22,880, VAH ~22,915, VAL ~22,840
  • Support: 22,880, then 22,830
  • Resistance: 22,915โ€“22,935 (all-time highs)
  • Unfinished auctions: Around 22,830 (Friday’s dip)

3. ? Market Sentiment Snapshot

  • Overall: Retail sentiment neutral to slightly bullish; institutional players using protective positions (puts/hedges).
  • Skew: VIX futures curve in slight contango โ†’ mild demand for short-term protection.
  • Positioning: Post-CPI and Q2 earnings, many systematic funds reduced volatility exposure; discretionary buying resumed.

4. ? Trade Scenarios & Setups

ES:

  1. Bullish Breakout Above 6250
    Trigger: Open >6245 sustained push
    Target: 6265 โ†’ then 6280
    Stop: below 6240
    Rationale: Clean run after trade-positive news; room to follow-through.
  2. Rejection at 6245โ€“6250
    Trigger: Price stalls/loss >5-min candle reversal
    Target: 6230 โ†’ 6220
    Stop: above 6250
    Rationale: Thinner summer markets prone to reversal; trade deadline risk.
  3. Fade Monday Open (Gap fill)
    Trigger: Open >6250 with low volume or tail
    Entry: Sell into rally
    Target: 6240โ€“6230
    Stop: above morning high
    Rationale: Holiday week, quarter-end exhaustion.

NQ:

  1. Bullish Continuation Above 22,935
    Trigger: Break >overnight VAH and ATH
    Target: 22,985 โ†’ 23,020
    Stop: below 22,915
    Rationale: Momentum from tech strength + trade optimism.
  2. Long Pullback to 22,880 Support
    Trigger: Dip into 22,880 area, bullish reversal bar
    Target: 22,935
    Stop: below 22,860
    Rationale: POC support zone likely to hold.
  3. Rejection at ATH with Divergence
    Trigger: High printed, RSI divergence
    Target: 22,880 โ†’ 22,830
    Stop: above 22,940
    Rationale: Overbought set-up, risk in summer conditions.

5. ? Backtesting / Statistical Edge

  • Contemporary Insight: On quarter-end days with trade-deal vibe, ES has closed higher 68% of time the next day, averaging +0.2%.
  • Pullback Edge: After exceeding VAH early in holiday weeks, 60% of days see at least a 5-point ES pullback intraday.
    (Note: Always verify these on your NinjaTrader historical data.)

? Final Notes

  • Continuous Prep: Mark key levelsโ€”ES 6245/6230; NQ 22,935/22,880โ€”on your NinjaTrader charts.
  • Discipline Over Prediction: Trade scenarios onlyโ€”donโ€™t overcommit; adapt to shifts.
  • Risk Control: Use tight stopsโ€”especially in low-volume summer runs.

Stay alert around the upcoming July 9 deadlineโ€”either upside from trade breakthroughs or downside if talks stall.

Wishing you a disciplined, well-structured session!

Written by NinjaTrader Indicators

Related Posts

0 Comments