E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Changed to Down on Friday

The technology-driven September E-mini NASDAQ-100 Index dropped sharply on Friday as investors fled market-leading tech shares due to mixed earnings reports and growing signs of a worsening coronavirus pandemic, which could exacerbate a deep economic recession. Geopolitical uncertainties also added to investor skittishness ahead of the weekend.

On Friday, September E-mini NASDAQ-100 Index futures settled at 10460.75, down 87.50 or -0.84%.

For the second day in a row, the tech sector weighed heaviest on all three major U.S. stock averages. Intel led the decline on Friday, its shares plunging after the chipmaker reported a delay in production of a smaller, faster 7-nonmeter chip.

In other news, Intel rival Advanced Micro Devices Inc shares jumped, while Tesla Inc extended Thursday’s losses.

Daily September E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trade through 10358.75 on Friday changed the main trend to down. The main trend will change to up if buyers take out the pair of main tops at 11058.00 to 11058.50.

The first short-term range is 9728.75 to 11058.50. Its 50% level at 10393.50 was tested on Friday.

The second short-term range is 9368.25 to 11058.50. Its retracement zone at 10213.25 to 10014.00 is the next downside target zone.

The third range is 8841.00 to 11058.50. Its retracement zone at 9949.75 to 9688.00 is another potential support area.

The combination of the retracement zones creates a potential support cluster at 10014.00 to 9949.75.

Short-Term Outlook

Our best downside target on Monday is 10014.00 to 9949.75. Since it is a potential support cluster, we’re anticipating that counter-trend buyers will show up on a test of this area. This could trigger a technical bounce.

If 9949.75 fails then the market is going to move into the wide retracement zone at 9949.75 to 6988.00. Aggressive counter-trend buyers could step in on a test of this area also.

Despite the change in trend to down, we’re still looking for a labored break because of the large number of retracement levels. This could create choppy, two-sided trading conditions.

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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.