December E-mini NASDAQ Futures Stage Comeback

Compared to the steady bullish trend of summer 2020, September’s trade of U.S. equities has been a rollercoaster ride. Perhaps no index has been as volatile as the NASDAQ. Stock splits and rumors have brought on a steep selloff, tanking the NASDAQ by more than 10%. Now, bids are once again hitting the market as equities players line up to “buy the dip.”

With only a few hours to go in the Wall Street session, the DJIA DOW (+130), S&P 500 SPX (+31), and NASDAQ (+176) are all in the green. Prices are back on the bull as the markets prepare for tomorrow’s FOMC Announcements. At this point, it appears that public sentiment heavily favors more dovish FED policy.

In addition to Wednesday’s FED Monetary Policy Statement, there are several other forex market movers due out. Here’s a quick look at the highlights:

Event

Bank of Canada (BoC) Consumer Price Index (YoY, August)

U.S. Retail Sales (MoM, August)

U.S. Retail Sales Control Group (August)

NAHB Housing Market Index (September)

FOMC Economic Projections

By a wide margin, the FOMC Economic Projections and the FED Policy Statement are the key events for tomorrow’s session. Be on the lookout for extreme volatility following these releases in the USD, DOW, S&P 500, and NASDAQ.

December E-mini NASDAQ Futures Are Back On The Bull

For the second consecutive session, December E-mini NASDAQ futures are trending higher. Values are closing in on 11,500 and a daily 38% Fibonacci resistance level.

December E-mini NASDAQ Futures (NQ), Daily Chart

Here are the levels to watch for the remainder of the session:

  • Resistance(1): 38% Current Wave Retracement, 11,505
  • Support(1): Bollinger MP, 11,413

Bottom Line: If the December E-mini NASDAQ extends its daily range, a scalping opportunity may set up from Fibonacci resistance (11,505). For the remainder of the session, I’ll have sell orders in the queue from 11,497.25. With an initial stop loss at 11,507.25, this trade produces 40 ticks on a standard 1:1 risk vs reward ratio.

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