E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 23, 2016 Forecast

September E-mini S&P 500 Index futures are in a strong position based on the pre-market trade. Although investors are still concerned about Fed Chair Janet Yellen’s speech on Friday, the price action suggests that they are prepared for anything at this time.

According to the Fed Funds Indicator, traders have pegged the chances of a September Fed rate hike at 24%, a December rate hike at 50% and a 25-basis point rate hike in September 2017. Investors look like they are approaching today’s market with clarity and conviction that could underpin the market all session.

TECHNICAL ANALYSIS

TREND INDICATOR SWING CHART

 

The main trend is up according to the daily swing chart. A trade through 4835.25 will signal a resumption of the uptrend.

The main trend will turn down on a trade through 4772.00.

RETRACEMENT ZONES

The main range is 4550.25 to 4835.25. Its retracement zone is 4692.75 to 4659.00. This is the next major downside target.

The new short-term range is 4835.25 to 4772.00. Its 50% level or pivot is 4803.75. The E-mini NASDAQ-100 Index crossed to the strong side of this pivot earlier today, giving it an upside bias. This price level will likely control the direction of the index all session.

GANN ANGLES

On the downside, the first major support angle today comes in at 4807.75. This long-term uptrending angle was tested earlier in the session. The structure of the chart will change if this price fails with the next Gann angle target coming in at 4766.25.

The key angle on the upside is at 4823.25. This is the last potential resistance angle before the 4835.25 main top.

WHAT TO DO TODAY

Watch the price action and read the order flow at 4823.25 early in the session. Overtaking this angle should trigger a rally into 4835.25. Repeat the process on a test of this top because this is the next potential trigger point for an acceleration to the upside.

A failure to overcome 4823.25 will indicate the presence of weakness, but don’t expect a downside bias to begin unless the price cluster at 4807.75 to 4803.50 is taken out with conviction.