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James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading slightly lower on Thursday as investors continue to assess the impact of the U.S. Federal Reserve’s major policy decisions after posting a wicked two-sided trade during yesterday’s session.

Although the prospect for lower interest rates tends to be bullish for stocks, gains could be limited because the slowing U.S. and global economies could weigh on future earnings. This is one major concern for stock investors.

At 08:08 GMT, June E-mini NASDAQ-100 Index futures are trading 7405.75, down 3.75 or -2.25%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7458.00 will signal a resumption of the uptrend. The index is in no position to change the main trend to down, but it is inside the window of time for a potentially bearish closing price reversal top. If formed then confirmed, we could see the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 7349.50 will change the minor trend to down. This will also shift momentum to the downside.

The new short-term range is 6965.75 to 7458.00. If the minor trend changes to down then look for a short-term break into its retracement zone at 7211.75 to 7153.75.


Daily Technical Forecast

The key level to watch today is the minor bottom at 7349.50. The market hit this low early Wednesday on renewed concerns over U.S.-China relations.

Bullish Scenario

We can build a case for a continuation of the rally if 7349.50 holds as support. If this creates enough upside momentum then buyers may take a run at yesterday’s high at 7458.00. Overtaking this level will indicate the buying is getting stronger. This could trigger a rally into a steep uptrending Gann angle at 7541.75. Crossing to the strong side of this angle will put the index in a bullish position.

Bearish Scenario

A sustained move under 7349.50 will signal the presence of sellers. The daily chart is wide open under this level with the first target angle coming in at 7253.75. Since the main trend is up, we could see a technical bounce on the first test of this angle. If it fails then look for the selling to continue into the retracement zone at 7211.75 to 7153.75.

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