E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Likely to Test 10679.50 – 10769.00

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening on Monday. The technology-driven index is being supported by increased bets that more stimuli from the government and Federal Reserve will be enough to revive a beat up domestic economy, while the race continues to develop an effective vaccine against the coronavirus.

At 13:35 GMT, September E-mini NASDAQ-100 Index futures are at 10547.75, up 88.75 or +0.85%.

Trillions of dollars in fiscal and monetary stimulus have been pivotal in bringing the S&P 500 to within 5% of its record high in February. Expectations are running low for any major announcements at a two-day Federal Reserve meeting this week, but analysts expect policymakers to lay the groundwork for more action in September or in the fourth quarter.

Finally, earnings will be the focus this week with reports due from NASDAQ Composite Index components, Apple Inc, Amazon.com Inc and Alphabet Inc.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Friday when sellers took out the previous swing bottom at 10358.75. A trade through 11058.00 and 11058.50 will change the main trend to up.

The short-term range is 9728.75 to 11058.50. Its retracement zone at 10393.50 to 10236.75 is potential support. It stopped the selling at 10301.00 on Friday.

The minor range is 11058.00 to 10301.00. Its retracement zone at 10679.50 to 10769.00 is the primary upside target. Since the main trend is down, watch for sellers to show up on a test of this area. They are going to try to form a potentially bearish secondary lower top.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the short-term 50% level at 10393.50.

Bullish Scenario

A sustained move over 10393.50 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into 10679.50 to 10769.00. Trader reaction to this zone could set the tone for the rest of the week.

Bearish Scenario

A sustained move under 10393.50 will signal the presence of sellers. Initially, the selling could be labored with targets coming in at 10301.00 and 10236.75.

Taking out 10236.75, however, could trigger an acceleration to the downside with 9728.75 a potential downside target.

For a look at all of today’s economic events, check out our economic calendar.

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.