E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 31, 2016 Forecast

December E-mini NASDAQ-100 Index futures are trading lower shortly before the regular session opening. Earlier today, ADP issued its private sector payroll report which basically was in line with expectations. The report showed that companies added 177,000 positions for August, just above expectations of 175,000.

Later today, Chicago PMI comes out at 0145 GMT and pending home sales at 0200 GMT. Most of the major market players, however, are focusing on Friday’s U.S. Non-Farm Payrolls report that is expected to show the economy added 180,000 jobs in August.

Technically, the main trend is down according to the daily swing chart. A trade over 4836.75 will turn the main trend to up. A move through 4757.25 will reaffirm the downtrend.

The main range is 4550.25 to 4836.75. Its retracement zone is 4693.50 to 4659.75. If the index begins to sell-off sharply then its retracement zone 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 controlling the short-term direction of the market.

Based on the current price at 4770.50, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 4788.75.

A sustained move under 4788.75 will indicate the presence of sellers. This could generate enough downside momentum to challenge 4757.25. This is followed closely by a steep downtrending angle at 4740.75. Crossing to the weak side of this angle will put the NASDAQ-100 in a bearish position with 4693.50 the next major target.

Overcoming the angle at 4788.75 will indicate the presence of buyers. The next target is the pivot at 4797.00. This is a potential trigger point for an acceleration into a price cluster at 4812.75 to 4814.25.

The early call is for a downside bias. The way of least resistance is also down. Any rallies are likely to be labored.