E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 10, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Investors are reacting to the weakness in Asia and Europe. Once again the catalyst behind the price action will be the headlines regarding the situation between the United States and North Korea. There are also earnings reports and economic data.

The volatility was down overnight. This suggests investors are still trying to decide whether today is a “risk off” or “risk on” day.

 Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 5995.75 will signal a resumption of the uptrend. A move through 5844.75 will indicate increasing selling pressure.

The short-term range is 5995.75 to 5844.75. Its 50% level or pivot is 5920.25. This level appears to be controlling the near-term direction of the market.

The main range is 5560.25 to 5995.75. If there is a sharp break today then its retracement zone at 5778.00 to 5726.50 will become the primary downside target.

Forecast

Based on the earlier price action, the direction of the index today is likely to be determined by trader reaction to the short-term pivot at 5920.25.

A sustained move under 5920.25 will signal the presence of sellers. If the selling volume increases then look for a move into 5844.75.

The low at 5844.75 is a possible trigger point for an acceleration into 5778.00 and 5768.25. This is followed by 5726.50. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Overtaking the pivot at 5920.25 will indicate the presence of buyers. This move may generate enough upside momentum to challenge an uptrending angle at 5976.25.

Crossing to the bullish side of the angle at 5976.25 will indicate the buying is getting stronger with 5995.75 the next major target.

Watch the price action and read the order flow at 5920.25 all session. Trader reaction to this level will tell us if risk is on or off today.