E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 1, 2018 Forecast

September E-mini NASDAQ-100 Index futures are expected to open higher based on the early session trade. The market is being driven higher by upbeat earnings from Apple. Investors are also waiting for the Fed announcement at 1800 GMT. Although the central bank is not expected to raise rates, traders want to know what the central bankers are thinking about inflation, the economy and the trade disputes.

E-mini NASDAQ-100 Index
Daily September E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend will change to up on a move through 7530.00. A move through 2166.75 will indicate the selling is getting stronger.

The main range is 6956.00 to 7530.00. Its retracement zone at 7243.00 to 7175.25 is providing support. It stopped the selling earlier in the week at 2166.75. This zone is controlling the near-term direction of the market.

The short-term range is 7530.00 to 2166.75. Its retracement zone at 7348.50 to 7391.25 is the primary upside target. This zone is very important because short-sellers are going to try to form a secondary lower top, while aggressive counter-trend buyers are going to try to take out this zone in an effort to make 2166.75 a new main bottom.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 7243.00.

A sustained move over 7243.00 will indicate the presence of buyers. This could create the upside momentum needed to challenge the retracement zone at 7348.50 to 7391.25. A downtrending angle passes through this zone at 7370.00, making is a valid target.

A sustained move under 7243.00 will signal the presence of sellers. This could trigger a plunge into 7175.25, followed by 2166.75.

If sellers take out 2166.75 then look for a move into an uptrending Gann angle at 7140.00. We could see a technical bounce on the first test of this angle. If it fails then look for an acceleration to the downside with the next target angle coming in at 7048.00. This is the last potential support angle before the 6956.00 main bottom.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.