E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 24, 2016 Forecast

September E-mini NASDAQ-100 Index futures closed higher on Tuesday after giving back most of its earlier gain. Thin trading conditions contributed to the price action. Although there was a move through the previous main top at 4836.75, the lack of increasing volume on the move encouraged intraday profit-taking, driving the index back below the previous main top.

Technically, the main trend is up according to the daily swing chart. A move through yesterday’s high at 4836.75 will signal a resumption of the uptrend. A trade through 4772.00 will turn the main trend to down. This price is important support because if it fails the next level is way down at 4693.50.

The new short-term range is 4772.00 to 4836.75. Its 50% level or pivot is 4804.25. Trader reaction to this level will set the tone for the day.

U.S. reports later in the session include Existing Home Sales at 1400 GMT and Crude Oil Inventories at 1430 GMT. Traders expect home sales to fall slightly from 5.57 million units to 5.52 million units.

Based on the low volume and the lack of fresh economic news, we expect the E-mini NASDAQ-100 Index to straddle the pivot at 4804.25 most of the session.