E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 30, 2016 Forecast

September E-mini NASDAQ-100 Index futures are expected to open lower based on the early trade. Trading conditions are thin ahead of Friday’s U.S. Non-Farm Payrolls report and the start of a long U.S. holiday week-end.

There is economic data today with the Conference Board set to release the latest information on U.S. consumer confidence for August. Additionally, the Case-Shiller home price index for August is also scheduled for release.

The index is also likely to feel pressure from a 2.5 percent lower opening by Apple. Its shares are losing value because of an unfavorable ruling by the European Commission. The Commission ordered Ireland to recover up to 13 billion Euros ($14 billion), plus interest, in back taxes from Apple.

Technically, the main trend is down according to the daily swing chart. It will turn up on a trade through 4836.75 and resume on a trade through 4757.25.

The main range is 4550.25 to 4836.75. If the downtrend begins to gain traction then its retracement zone at 4693.50 to 4659.75 will become the primary downside target.

The short-term range is 4836.75 to 4757.25. Its 50% level or pivot at 4797.00 is currently controlling the short-term direction of the market.

Based on the current price at 4783.75 and the earlier price action, the key area to watch is a price cluster at 4796.75 to 4797.00.

A sustained move under 4796.75 will indicate the presence of sellers. The daily chart is wide open under this price with the next target angle coming in at 4756.75. Crossing to the weak side of this angle will put the index in a bearish position.

A sustained move over 4797.00 will signal the presence of buyers. The rally could be labored, however, with potential upside targets coming in at 4678.25, 4816.75 and 4846.75. The latter is the last potential resistance before the 4836.75 main top.

Look for a downside bias today on a sustained move under 4796.75 and an upside bias to develop on a sustained move over 4797.00. The way of least resistance is down.