September E-mini NASDAQ-100 Index futures broke sharply immediately after the Federal Reserve raised its inflation expectations and moved up the time frame on when it will hike interest rates next. Since the initial reaction, the market has clawed back more than half of its intraday losses and is now in a position to turn higher for the session.
At 19:39 GMT, September E-mini NASDAQ-100 Index futures are trading 14024, up 3.00 or +0.02%.
The tech-driven index began its rebound after Chairman Jerome Powell said in a press conference that the so-called dot-plot projections should be taken with a “big grain of salt” and the liftoff is “well into the future.”
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, but momentum shifted to the downside when sellers confirmed yesterday’s closing price reversal top.
A trade through 14155.25 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 13451.25 will change the main trend to down.
The minor trend is also up. A trade through 13716.25 will change the minor trend to down. This will confirm the shift in momentum.
The first minor range is 14155.25 to 13830.25. The index is currently straddling its 50% level at 13992.75.
The second minor range is 13451.25 to 14155.25. Its 50% level at 13803.25 is another potential downside target and support.
The short-term range is 12906.00 to 14155.25. If the minor trend changes to down then look for the selling to extend into its 50% level at 13530.50.
Daily Swing Chart Technical Forecast
The direction of the September E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13992.75.
A sustained move over 13992.75 will indicate the presence of buyers. If the move creates enough upside momentum then look for the rally to possibly extend into the reversal top at 14155.25. This is a potential trigger point for an acceleration to the upside.
A sustained move under 13992.75 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the second pivot at 13803.25. Taking out this level could lead to a test of the minor bottom at 13716.25. This is the last potential support before the 13530.50 short-term 50% level.
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This article was originally posted on FX Empire