Nasdaq futures techncal analysis for today
Despite the choppy price action, Nasdaq futures technical analysis on a four-hour time frame suggests that, despite a failed breakout yesterday, there is a potential for an upside breakout. The market appears to be waiting for more information from Powell later this week.
Traders and investors should keep an eye on the EMA20 (four-hour timeframe) at 12,233. (even though the EMA 20 on the daily is a much more popular indicator, watching the 4hr can be a legit early sign). Bears have a better chance of taking control if two four-hour candles close below 12,233. Traders should therefore keep an eye on that price level.
Despite the fact that the recent breakout attempt failed, the price is still hovering around. Furthermore, there were shallow pullbacks during the rally, indicating that sellers do not have significant power to bring the price down and that buyers are stronger.
S&P 500 futures techncal analysis for today
The technical analysis for the S&P 500 for March 7th suggests a potential breakout from the bull flag, but it is not very convincing. Despite being a little fakie, the channel is still intact, and the purple line is an anchored view up from last year's low in October, so price staying above it, and its recent reaction where buyers bought strongly there, is bullish. Furthermore, as with the Nasdaq futures, the recent rally's pullbacks have been shallow.
Traders who want to set up similar charts should keep an eye on whether the price re-enters or remains above the channel. The market appears to be copping around in a tight range right now, possibly awaiting more information from Powell.
The possibility of an upside breakout remains, but caution is advised. ForexLive.com provides additional perspectives and insights for traders seeking additional information.
