Turns Short-Term Bullish on Trade Thru 12096.75

Shortly after the cash market closed on Wednesday, June E-mini NASDAQ-100 Index futures were trading higher. Following the publication of minutes from the Federal Reserve's most recent monetary policy meeting, the market is up, although off its highs.

The minutes revealed that officials agreed that the US economy was quite robust as they struggled to control inflation without causing a recession.

June E-mini NASDAQ-100 Index futures were trading at 11922.50 at 20:17 GMT, up 151.50 or 1.29 percent. The Invesco QQQ Trust ETF closed at $291.33, up $4.09 or 1.42 percent from its previous close.

The minutes from the Federal Reserve's meeting on May 3-4 revealed that policymakers recognized the need to increase rates fast, maybe more than the market has priced in, to combat recent inflationary pressures.

The index increased following the minutes since there were no surprises.

Technical Analysis of the Daily Swing Chart

According to the daily swing chart, the major trend is down. The return of the decline will be signaled by a trade through 11491.25. The major trend will turn to up if the price breaks through 12594.00.

The small downward trend continues. The minor trend will be changed to up with a transaction through 12096.75. This will also alter the market's momentum upward.

A long-term retracement zone between 11671.25 to 10468.25 is the primary support on the downside.

The first barrier on the upside is a small pivot at 12042.75. After it, at 12042.75, there is a second minor pivot.

Short-Term Prospects

The early Thursday direction of the June E-mini NASDAQ-100 Index will most likely be determined by trader response to 11671.25.

Positive Outlook

The presence of buyers will be shown by a prolonged advance over 11671.25. The minor peak at 12096.75 is the initial upside objective, followed by 12042.75.

Taking out 12096.75 might provide the necessary upward impetus to attack the 50% level at 12523.25, then the major peak at 12594.00. If a trade is made through this level, the major trend will flip to up, signaling further upside potential.

Bearish Prospects

A prolonged move below 11671.25 indicates weakness. If the minor bottom at 11576.25 is broken, the minor bottom at 11491.25 should be tested quickly. This might be the starting point for a run to the major bottom at 10913.75 on November 2, 2020.