June E-mini NASDAQ-100 Index futures are trading higher late in the session on Tuesday after reaching the 10,000 level for the first time in history. In the cash market, the tech-heavy NASDAQ hit a record high for the third straight session as investors eyed this week’s Federal Reserve meeting for signs on how it views a restarting economy.
At 18:41 GMT, June E-mini NASDAQ-100 Index futures are trading 9969.00, up 84.25 or +0.85%.
According to Reuters, the NASDAQ became the first of Wall Street’s main indexes to confirm a new bull market after hitting a low on March 23. The rally in U.S. stocks accelerated last week after strikingly upbeat jobs data strengthened views the worst of the economic fallout from the pandemic was over.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Tuesday when buyers took out the previous day’s high. A trade through 8847.00 will change the main trend to down. This is highly unlikely. The most we can really expect at this time is a meaningful 50% to 61.8% correction or a change in the minor trend.
The minor trend is also up. A trade through 9172.50 will change the minor trend to down. This will also shift momentum to the downside.
There is no resistance in uncharted territory so stop looking for it and stop trying to guess where it is.
The first sign of weakness following a prolonged move up in terms of price and time is usually a closing price reversal top. Even that chart pattern is no guarantee that any sell-off will be sustained.
We saw a closing price reversal top last Thursday, but it was never confirmed.
The key level to watch into the close is Monday’s close at 9884.75. A sustained move over this level will indicate strong buying. A close under this level will form a closing price reversal top. If confirmed, we could see a 2 to 3 day correction, but not necessarily a change in trend.
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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