The U.S. indices are on the rebound after a tough Tuesday session. Once again, the FED ruled the day with FOMC members Bullard and Powell essentially taking a ½ point July interest rate cut off of the table. Equities traders did not like the news much, driving stocks significantly lower by the closing bell.

This morning has been a different story, with investors driving U.S. indices higher in early action. For the first fifteen minutes of trade on Wall Street, the DJIA DOW (+85), S&P 500 SPX(+13), and NASDAQ (+89) are in the green.

U.S. Indices Hang Tough In Bullish Territory

For the time being, the uptrend in the U.S. indices remains valid as short-term traders have stepped up and bought the latest dip. Subsequently, the September E-mini DOW has bounced from Fibonacci support and is driving higher.

In a Live Market Update from Tuesday, I issued a buy recommendation for the September E-mini DOW. The trade turned out to be a success, generating 82 ticks profit following a rejection of the daily 38% Current Wave Retracement (26530). 

Here are the levels to watch for today’s session:

• Resistance(1): Swing High, 26922
• Support(1): 38% Current Wave Retracement, 26530

Overview: At press time (about 9:45 AM EST), the September E-mini DOW is bullish (as are the other U.S. indices) and in position to drive at new all-time highs. The key technical level to watch in this market is the 38% Current Wave Retracement (26530). As long as prices stay above this area, one is well advised to maintain a short-term bullish bias.