Technology stocks powered the September E-mini NASDAQ-100 Index to a record high on Monday as investors returned to riskier assets after last week’s tumultuous trade and Pfizer-BioNTech’s COVID-19 vaccine go full U.S. approval.
At 19:01 GMT, September E-mini NASDAQ-100 Index futures are trading 15329.50, up 242.75 or +1.61%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The market soared after taking out a pair of minor tops at 15141.75 and 15157.25, and a main top at 15172.50. A trade through 14710.50 will change the main trend to down.
The new minor range is 14710.50 to 15337.50. Its retracement zone at 15024.00 to 14950.00 is support. It’s controlling the near-term direction of the trade. This zone will continue to move up as the index moves higher. It’s trailing retracement zone support.
Daily Swing Chart Technical Forecast
With the index at an all-time high, there is no resistance. Therefore, price won’t change the trend, but a chart pattern like a closing price reversal top will be the first sign that the selling is greater than the buying at current price levels.
If the index doesn’t form a reversal top then the next best indicator of selling pressure will be a pullback under the previous record high at 15172.50, followed by minor tops at 15157.25 and 15141.75. In other words, during a strong uptrend, real buyers tend to defend the old tops. The old adage says “old tops become new bottoms.”