Piece written by Alexa Smith, Trive Financial Market Analyst  

Despite the Federal Reserve’s interest rate hike yesterday, the Nasdaq 100 Futures (CME: NQ) showed little surprise and ticked higher without much reaction. This has led to a sense of relief in the equity market, with expectations that the Fed may pause its rate hikes next month. However, the Fed has indicated another rate hike before the year-end, which could potentially impact market gains. 

Today, the US is awaiting crucial economic data, including the quarter-on-quarter GDP Growth Rate and Durable Goods Orders. The GDP Growth Rate is expected to slow from 2% to 1.8%, while Durable Goods Orders are anticipated to decrease from 1.7% to 1%. These macroeconomic indicators have the potential to impact the index’s gains. On the other hand, Meta’s (ISIN: US30303M1027) better-than-expected earnings could contribute positively as the company reported robust engagement from Llama 2, Threads, and Reels. 

Technical 

The Nasdaq 100 Futures progressed above the 50-day moving average but fell short of reaching the 23.60% Fibonacci level. Despite the Fed’s interest rate decision, the support at the 50% level, marked at 15562.50, remained intact as the index futures closed in the green, signalling a potential continuation of the upward trend. If the upward momentum is sustained, the major resistance at 15826 could mark a point of interest towards the major resistance level of 16061.75, thereby continuing the upward trend. 

On the other hand, the 15826 resistance might hold in the face of poor macroeconomic data, leading to a potential pullback towards the 15562.50 support. 

Summary 

The Nasdaq 100 Futures ticked higher despite the Federal Reserve’s interest rate hike, encouraging the price action towards the 16061.75 major resistance. However, weak macroeconomic data could encourage a pullback towards the 15562.50 support.  

Sources: TradingView, Investor’s Business Daily, Reuters, Nasdaq, CNBC