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James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening and after hitting new all-time high. Meanwhile, the Dow and the S&P 500 Index traded lower as investors awaited an update from the Federal Reserve on the state of the economy and status of any further stimulus from central bank policymakers.

Shares of Amazon and Apple gained more than 1% each. Facebook, Alphabet and Netflix rose 0.7%, 0.6% and 1.1%, respectively.

At 14:55 GMT, June E-mini NASDAQ-100 Index futures are trading 10039.75, up 88.75 or 0.89%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. The main trend changes to down on a trade through 8847.00 so it’s pretty safe right now.

The minor trend is also up. A trade through 9572.25 will change the minor trend to down. This will also shift momentum to the downside.

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Daily Swing Chart Technical Forecast

There is no resistance in uncharted territory which makes picking a top very difficult. You can throw out the oscillator and indicators too. Because “overbought” can’t be determined by a number. A combination of volume and order flow are the best indicator. Buyers have to quit “buying” in order to be overbought.

The closest one can get to a top is the closing price reversal. Let the rally stop and form a reversal top before even thinking about paying the short-side.

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Wednesday is likely to be determined by trader reaction to yesterday’s close at 9951.00.

Bullish Scenario

A sustained move over 9951.00 will indicate the presence of buyers. Taking out the intraday high at 10077.75 will indicate the buying is getting stronger.

Bearish Scenario

A sustained move under 9951.00 will signal the presence of sellers. This will put the index in a position to post a potentially bearish closing price reversal top.

A lower close will form the chart pattern on the daily chart. If confirmed on Thursday, this could lead to a 2 to 3 day correction, but not necessarily a change in the trend. It’ll be more of an indication that the selling is greater than the buying at current price levels, probably designed to alleviate some of the upside pressure.

For a look at all of today’s economic events, check out our economic calendar.
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