E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 25, 2016 Forecast

September E-mini NASDAQ-100 Index futures inched higher early Monday before moving back to slightly lower. The earlier price action extended the uptrend, but the buying volume wasn’t strong enough to trigger a breakout. Buyers seem a little tentative at current price levels ahead of the Fed announcement on Wednesday and the Bank of Japan announcement on Friday.

Technically, the main trend is up according to the daily swing chart. The market is now within striking distance of the December 29, 2015 and the December 1, 2015 main tops at 4681.75 and 4699.50 respectively.

If there is no follow-through to the upside then beware of a potentially bearish closing price reversal top. This will occur on a close below 4657.25.

Based on the close at 4657.25 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 4646.25.

A sustained move over 4646.25 will indicate the presence of buyers. This could create enough upside momentum to fuel a rally into 4669.50, 4681.75 and 4699.50.

A sustained move under 4646.25 will signal the presence of sellers. The daily chart indicates there is room to the downside so prepare for the possibility of an acceleration to the downside with 4598.25 the next likely target. This is followed by a longer-term angle at 4573.75.

Watch the price action and read the order flow at 4646.25 today. Trader reaction to this angle will tell us if the bulls or the bears are in control.