Investors “Buy The Dip” In NASDAQ Futures - Forex News by FX Leaders

Investors “Buy The Dip” In NASDAQ Futures

Posted Wednesday, June 17, 2020 by
Shain Vernier • 1 min read

Throughout the Trump Rally in U.S. equities, “buy-the-dip” has been the go-to strategy for investors. It appears as though the onset of COVID-19 has done little to diminish the effectiveness of the plan. In the case of the NASDAQ, values have roared back from March’s panic lows, rallying from every dip along the way.

Today’s session has been no different as the U.S. indices continue to pare the losses of last Thursday. Going into the daily close, the DJIA DOW (+60), S&P 500 SPX (+14), and NASDAQ (+90) are all trending higher. It looks like stock market bulls have once again gone long following a pullback.

September NASDAQ Futures On The Doorstep Of All-Time Highs

E-mini NASDAQ futures are back above 10,000 following rollover from the June to September contract. At press time (about 1:45 PM EST), the September E-mini NASDAQ is positioned to extend its three-day win streak to four.

September E-mini NASDAQ Futures (NQ), Daily Chart
September E-mini NASDAQ Futures (NQ), Daily Chart

Here are a few levels worth watching in this market:

  • Resistance(1): Spike High, 10,140.00
  • Support(1): Bollinger MP, 9556.00
  • Support(2): Daily SMA, 9844.75

Overview: Until we see a fundamental shift in market sentiment, it’s long-or-nothing for the NASDAQ. Values continue to rise on a near-daily basis; if we see a successful reopen without a crippling “second wave” of COVID-19 infections, big tech will continue to rally ahead of November’s General Election. If COVID-19 returns with a vengeance, then all bets are off going into the fall/winter months.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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