The NAS100 remains positioned in its bullish channel, between the upper blue and red bands. The market responded positively to Fed Chair Powell's Brooking Institution delivery and a long blue candle was charted two days ago (green vertical rectangle).
Since then, the NAS100 hourly has drifted sideways (blue horizontal rectangle). A small pattern within a longer-term uptrend has a bullish continuation bias. To this end, the EMAs and stochastic have turned up (black ellipses). If the EMAs develop angle and separation and the stochastic works towards the 80+ region, an underlying bullish momentum will be present.
Yesterday's moderation in core PCE will be positive for the growth index if it reflects in Fed policy. To this end, the NFP print at 1:30pm GMT today will be significant. However, please be cautious, as volatility will increase on its release.
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.