E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Up, Momentum Down, Next Target Zone 7512.25 – 7467.25

The tech-based stock index is trading lower in the pre-market session. Outside factors such as trade disputes and weakness in emerging markets are the primarily catalysts behind the early selling pressure. Support for the index continues to be supplied by a strong performance in Amazon stock.

At 0715 GMT, September E-mini NASDAQ-100 Index futures are trading 7606.25, down 32.50 or -0.43%.

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

Daily Swing Chart 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 August 30. A trade through 7697.00 will negate the closing price reversal top and signal a resumption of the uptrend. The move will also make 7586.75 a new main bottom.

The minor trend is up. A trade through 7586.75 will indicate the selling pressure is getting stronger.

The minor range is 7697.00 to 7586.75. Its 50% level or pivot at 7642.00 is controlling the price action.

The intermediate range is 7316.50 to 7697.00. Its retracement zone at 7512.25 to 7467.25 is the next downside target. Since the main trend is up, buyers should come in on a test of this zone.

The main range is 7166.75 to 7697.00. Its retracement zone at 7431.75 to 7369.25 is major support. Once again, expect to see buyers show up on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the minor pivot at 7642.00.

A sustained move under 7642.00 will indicate the presence of sellers. This could create enough downside momentum to challenge yesterday’s low at 7586.75.

If sellers continue to come in on a move under 7586.75 then look for the move to extend into at least 7512.25, followed by 7467.25. The major downside target zone is 7431.75 to 7369.25.

Overtaking and sustaining a rally over 7641.75 will signal the return of buyers. This could lead to a retest of the minor top at 7693.75 and the main top at 7697.00.

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.