E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 15, 2014 Forecast

September E-mini NASDAQ-100 Index futures closed sharply higher on Thursday and in a position to go after the July 30 top at 3983.00 and the July 234 top at 3991.25. Taking out these levels will reconfirm the uptrend.

Helping to create the upside momentum for today was the close above a steep uptrending angle, moving up 32 points per day from the 3826.50 bottom. This angle comes in at 3986.50 today. Yesterday’s close at 3968.00 means the index has to rally more than 18.50 points to overcome this angle.

The last angle before the tops comes in at 3975.25. This could be early resistance, but the upside momentum on the close and the overall strength of the current four-day rally suggests traders are going to take out this angle easily.

The first sign that momentum is slowing will be the failure to overtake 3986.50. An early session surge coupled with an intra-day closing price reversal top on the hourly chart could lead to a profit-taking break at some point today. Longer-term traders shouldn’t be too concerned about this unless it leads to a daily closing price reversal top.

Based on yesterday’s strong close, look for traders to go after the two tops at 3983.00 and 3991.25. The steep angle at 3986.50 will be another target. Crossing to the bullish side of this angle will put the index in an extremely strong position.

The first sign of weakness today will be a failure to cross and/or hold above 3975.25. This is followed by a break under 3959.25. If this occurs then watch for a break into a pair of uptrending angles at 3935.50 and 3924.75.