E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 13, 2015 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The main trend is down according to the daily swing chart, but yesterday’s closing price reversal bottom shifted momentum to the upside.

Based on the current price at 4544.75, the index has a clear shot at a downtrending angle at 4581.00. This is the last resistance angle before the 4584.75 main top. A trade through this top will turn the main trend to up on the daily chart.

The next targets above 4584.75 are downtrending angles at 4605.00 and 4614.00. The next potential trigger point for an upside surge is the main top at 4629.00. Taking out this level with conviction could lead to an acceleration into an angle at 4650.00. This is the last major resistance angle before the 4686.00 contract high.

On the downside, the index begins to weaken under downtrending angles at 4542.00 and 4533.00. The first potential support comes in at 4508.75 and 4495.25.

Based on the early price action, the direction of the market today is likely to be determined by trader reaction to 4542.00. The first major decision point on the upside is 4584.75.

Watch the price action and read the order flow on a test of 4584.75. This will help us determine whether the buying is strong enough to change the main trend to up on the daily chart.