September E-mini NASDAQ-100 Index futures are called higher based on the pre-market trade. The rally is being driven by better-than-expected quarterly profits by IBM, hopes for more domestic stimulus and more positive news on a coronavirus vaccine. Buyers were also encouraged to add to their established positions after European Union leaders agreed on a massive coronavirus relief program overnight.
At 12:46 GMT, September E-mini NASDAQ-100 Index futures are trading 11030.75, up 79.75 or +0.73%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 11058.50 will signal a resumption of the uptrend following a six-day setback. The main trend will change to down on a move through the last main bottom at 10358.75.
The minor trend is also up. The minor trend changed to up on Monday when buyers took out 10766.50. This also shifted momentum to the upside. The minor trend will change to down on a trade through 10475.50.
Daily Swing Chart Technical Forecast
Trader reaction to 11058.50 should set the tone after the cash market opening. A move through this level will mean a new contract high has been hit.
Taking out 11058.50 will increase the importance of Monday’s close at 10951.00.
If a new all-time high is created then a close under 10951.00 will form a potentially bearish closing price reversal top. This won’t change the trend to down, but it could lead to a 2 to 3 day correction.
A trend in motion is likely to remain in motion unless there is a closing price reversal top.
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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