September E-mini NASDAQ-100 Index futures are trading sharply higher as we approach the last hour of cash market trading. The market is rebounding after plunging during the pre-market session on renewed coronavirus fears.
After opening sharply lower, the index began to claw losses on rumors the Federal Reserve would announce further measures to support the market amid the coronavirus pandemic.
At 18:51 GMT, September E-mini NASDAQ-100 Index futures are trading 9781.50, up 149.25 or +1.55%.
The Fed said it would buy individual corporate bonds. Earlier this year, the central bank said it would buy corporate-bond exchange-traded funds. That announcement pulled the market back from the brink in late March. This latest announcement builds on that program and shows the Fed will continue to support credit markets during the coronavirus.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 10140.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through 8841.00.
The minor trend is down. This is controlling the momentum.
The first main range is 8841.00 to 10140.00. Its retracement zone at 9490.50 to 9337.25 provided support earlier in the session.
The second main range is 8547.00 to 10140.00. Its retracement zone at 9343.50 to 9155.50 is additional support.
The minor range is 10140.00 to 9368.25. Its retracement zone at 9754.25 to 9845.25 is the first upside target. This zone is currently being tested.
The next major move in the September E-mini NASDAQ-100 Index will likely be determined by trader reaction to the minor retracement zone at 9754.25 to 9845.25.
Aggressive counter-trend sellers could come in to try to stop the rally, but if they fail then look for an acceleration to the upside over 9845.25 with 10140.00 the next likely upside target.
A failure to overcome 9754.25 will signal the presence of strong sellers. This could lead to a labored break with potential downside targets coming in at 9490.50, 9337.25 and 9155.50.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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