E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 10, 2015 Forecast

September E-mini NASDAQ-100 Index futures finished slightly lower on Friday after a successful test of a major retracement zone triggered a late session rally. Although the main trend turned down on the daily chart, the price action suggests investor reaction to the retracement zone will dictate the direction of the market over the near-term.

The main trend is down according to the daily swing chart. The main range is 4331.75 to 4686.00. Its retracement zone is 4508.75 to 4467.00. An uptrending angle pass through this range at 4507.75, forming a tight cluster with the 50% level at 4508.75. Friday’s low at 4480.50 occurred below the angle and inside the retracement zone, indicating that buyers recognized this area as a value zone.

A sustained move over 4508.75 could trigger a rally into a steep downtrending angle at 4533.00. Taking out this angle could trigger an acceleration into a pair of downtrending angles at 4566.00 and 4581.00.

A sustained move under 4507.75 will signal the presence of sellers. The next potential downside target is a Fibonacci level at 4467.00. Crossing to the weak side of a downtrending angle at 4446.00 will put the market in an extremely bearish position with the next target an uptrending angle at 4419.75.

Look for a bullish tone on a sustained move over 4508.75 and a bearish tone on a sustained move under 4507.75.