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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading higher early Friday as investors seem to be shrugging off renewed concerns over U.S.-China trade relations and instead are focusing on the strong possibility of lower interest rates over the long-term.

On Wednesday, the U.S. Federal Reserve cut its benchmark interest rate 25-basis points, signaled it would pause on additional cuts and said it would not raise rates until inflation was “substantially” higher. On Thursday, the Core PCE Price Index showed inflation was well below the Fed’s 2% target so investors can enjoy low rates for a long time. Low rates tend to be supportive for stocks.

At 04:16 GMT, December E-mini NASDAQ-100 Index futures are trading 8117.25, up 27.00 or +0.33%.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8141.00 will signal a resumption of the uptrend. The main trend is safe for now. It will change trend on a move through 7583.25. Nonetheless, due to the prolonged move up in terms of price and time, investors should keep an eye out for a closing price reversal top because this will indicate the selling is greater than the buying at current price levels.

The minor trend is also up. A trade through 8020.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 7810.25 to 8141.00. Its 50% level at 7975.50 is the first downside target.

The second minor range is 7810.25 to 8141.00. Its 50% level at 7862.00 is the second downside target.


Daily Swing Chart Technical Forecast

The weekly range is 8141.00 to 8020.50. Its 50% level is 8080.75. Trader reaction to this level will determine the direction of the index on Friday.

Bullish Scenario

A sustained move over 8080.75 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into the high of the week at 8141.00. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 8080.75 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into the low of the week at 8020.50. If it fails then look for the selling to possibly extend into the pivot at 7975.50. This is a potential trigger point for an acceleration to the downside.

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