The NAS100 daily chart trades between the lower blue and red bands, a weak channel. Its stochastic is below 20 (green rectangle). This area denotes strong downwards momentum; therefore, the longer it maintains this position, the greater the likelihood of lower prices.
The hourly chart has turned bearish ahead of today's cash open. Its EMAs and stochastic have crossed negatively (black ellipses). Moreover, the hourly stochastic is tending toward 20. If it holds this position, the index will be under pressure.
The NAS100 is sensitive to interest rate movements due to the time value of money. As such, tomorrow's Fed hike is creating headwinds.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.