E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – New Leg Up if Old Tops Can Become New Bottoms

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%.

Leading the index higher are shares of Moderna Inc, up 7.15%. Xilinx Inc is trading 6.67% higher and NetEase Inc is up 5.66%.

Apple Inc, Facebook Inc, Amazon.com, Google-owner Alphabet Inc, Nvidia Corp and Tesla Inc are up between 1.1% and 4.6%.

Daily September E-mini NASDAQ-100 Index

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.”

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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.