E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 9, 2019 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. The market is recovering after early session weakness nearly filled in the gap on the daily chart formed more than a week ago. The price action suggests investors may be hearing something positive from one or several Fed members scheduled to deliver speeches early Tuesday.

At 14:22 GMT, September E-mini NASDAQ-100 Index futures are trading 7808.00, up 7.00 or +0.10%.

Going into the session investors were expressing concerns over the direction of U.S. interest rates ahead of the testimony of Federal Reserve Chairman Jerome Powell before Congressional sub-committees on Wednesday and Thursday. Investors will be looking for clues about whether the Fed will take “insurance” against a weakening economy in the form of a rate cut, or pass on the cut because the economy is strong.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on July 5 at 7909.75.

A trade through 7909.75 will negate the reversal top and signal a resumption of the uptrend. The trend will officially turn down on a move through 7446.25.

The short-term range is 7446.25 to 7909.75. If the selling pressure continues then its retracement zone at 7678.00 to 7623.25 will become the primary downside target. Since the main trend is up, buyers could show up on a test of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 7808.00, 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 longer-term uptrending Gann angle at 7769.00. This angle was tested earlier in the session.

Bullish Scenario

A sustained move over 7808.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the downtrending Gann angle at 7845.75. Look for sellers on the first test of this angle.

Overcoming 7845.75 will indicate the buying is getting stronger with potential target angles dropping in at 7877.25 and 7843.75. The latter is the last potential resistance angle before the 7909.75 and 7910.75 main tops.

Bearish Scenario

A sustained move under 7808.00 will signal the presence of sellers. The next target is the uptrending Gann angle at 7718.25. If this fails then look for the selling to possibly extend into the short-term retracement zone at 7678.00 to 7623.25.

Overview

The early price action suggests traders may be trying to create a trading range ahead of the start of Powell’s two-day testimony on Wednesday.

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.