September E-mini NASDAQ-100 Index futures are trading sharply higher late in the session on Tuesday, bucking the overall bearish intraday trend for higher-risk assets.
The tech-weighted index was pressured earlier in the session as investors dumped shares amid rising fears of a recession.
However, the market turned around after a U.S. appeals court on Tuesday struck down an order by the Securities and Exchange Commission that would have allowed some financial firms that are not stock exchanges to have a say in how essential stock market data is priced and disseminated.
Buyers Bet Fed Could Become Less-Hawkish
Although recession fears weighed heavily on the market, some investors believe this could force the Federal Reserve and other major central banks to become less-aggressive and lift interest rates at a slower pace. It’s only speculation, but it seems to have been enough to scare a few of the weaker shorts out of the market.
Trader reaction to the minor 50% level at 11806.50 is likely to determine the direction of the September E-mini NASDAQ-100 Index into the close on Tuesday.
A sustained move over 11806.50 will signal the presence of buyers. If this move generates enough upside momentum then look for a surge into the short-term retracement zone at 12021.25 to 12246.00.
This is the last potential resistance before the main top at 12262.00. Taking out this price will change the main trend to up.
A sustained move under 11806.50 will indicate the presence of sellers. This could lead to a retest of the long-term 50% level at 11671.25, followed by the minor Fibonacci level at 11524.50.
If 11524.50 fails to hold then look for a retest of the minor bottom at 11351.00. This is a potential trigger point for an acceleration into the main bottom at 11068.50.
Aggressive counter-trend buyers are trying to form a potentially bullish secondary higher bottom at 11351.00.
This chart pattern will be confirmed if buyers can take out 12262.00. A trade through 11068.50 will confirm the formation of a potentially bearish secondary lower top at 12262.00.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire