June E-mini NASDAQ-100 Index futures are inching lower early Wednesday in a mostly quiet trade after posting a dramatic reversal to the upside the previous session. The choppy price action this week suggests some of the major players have moved to the sidelines ahead of Friday’s key inflation reading.
Gains Capped by European Weakness
U.S. futures traders are tracking weakness in Europe ahead of the U.S. opening. European stocks slipped on Wednesday and Wall Street futures were in the red as worries that central bank tightening will stifle global growth weighed on markets.
Elevated Inflation Remains Key Issue
The World Bank on Tuesday slashed its global growth forecast by nearly a third to 2.9% for 2022, warning of a period of “feeble growth and elevated inflation”, and U.S. Treasury Secretary Janet Yellen told senators that she expected inflation to remain high.
Daily Swing Chart Technical Analysis
The main trend is down. It turned down on Tuesday when sellers took out the 12442.50 swing bottom. A trade through 12945.25 will change the main trend to up. A move through 12412.50 will signal a resumption of the downtrend.
The choppy trade the last two weeks is the result of being trapped inside a number of retracement levels.
On the upside, resistance is 12894.75, 13226.00 and 13380.00.
On the downside, support is 12523.25 and 12218.25. The latter is a potential trigger point for an acceleration into the major support at 11671.25.
Daily Swing Chart Technical Forecast
Trader reaction to 12679.00 is likely to determine the direction of the June E-mini NASDAQ-100 Index early Wednesday.
A sustained move under 12679.00 will indicate the presence of sellers. This could lead to a labored break with downside targets lined up at 12523.25, 12412.50 and 12218.25.
Taking out 12218.25 will indicate the selling pressure is getting stronger. This could trigger an acceleration into 11671.25.
A sustained move over 12679.00 will signal the presence of buyers. The first upside target is a 50% level at 12894.75, followed by a main top at 12945.25.
A trade through 12945.25 will change the main trend to up. This will be a sign of strength, but traders still face a wall of resistance at 13226.00 to 13380.00.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire