E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 18, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. There was no follow-through to the downside following yesterday’s steep sell-off. The index is also trading inside yesterday’s range, indicating investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 5761.00 will change the main trend to down.

The primary downside target is the retracement zone at 5778.00 to 5726.50. Even if the main trend changes to down, we could see a technical bounce on a test of this zone. This could cause a counter-trend short-covering rally. Value-seekers could also step in to stop the price slide.

On the upside, the main target is the retracement zone at 5878.50 to 5906.00.

Forecast

Based on the current price at 5318.25 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the uptrending angle at 5801.00.

A sustained move over 5801.00 will indicate the presence of buyers. This could lead to a surge into the next uptrending angle at 5841.00. Overcoming this uptrending angle could trigger an even stronger rally into 5878.50 to 5906.00.

A sustained move under 5801.00 will signal the presence of sellers. The next break is likely to be labored because of a series of potential support levels at 5781.00, 5778.00 and 5771.00. The latter is the last potential support angle before the 5761.00 main bottom.

Taking out 5761.00 will change the main trend to down. This could trigger an acceleration into 5726.50.