E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 26, 2016 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly better shortly before the cash market opening. Yesterday, the index posted a potentially bearish closing price reversal top. A trade through 4643.50 will confirm the chart pattern and could trigger the start of a 2 to 3 day correction.

The main trend is up according to the daily swing chart. However, momentum could shift to down if the closing price reversal top is confirmed. A trade through 4669.50 will negate the reversal top and will indicate a resumption of the uptrend. The main trend will turn to down on a trade through 4550.25.

The short-term range is 4550.25 to 4669.50. Its retracement zone at 4609.75 to 4595.75 is a target today. An uptrending angle passes through this zone at 4606.25, making it a valid target also. This zone is followed by a long-term uptrending angle at 4589.75.

The long-term uptrending angle at 4589.75 is the trigger point for a steep break into the main bottom at 4550.25.

Based on yesterday’s close at 4653.75 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 4662.25.

A sustained move over 4662.25 will indicate the presence of buyers. This could create enough upside momentum to challenge the reversal top at 4669.50. This top is followed by major tops at 4681.75 and 4699.50.

A sustained move under 4662.25 will signal the presence of sellers. However, the first trigger point for an acceleration to the downside is yesterday’s low at 4643.50. A trade through this level will confirm the closing price reversal top and likely fuel a 2 to 3 day break into at least 4609.75.