September E-mini NASDAQ-100 Index futures are called lower based on the pre-market trade. Investors are reacting to a combination of events including concerns over earnings of Facebook and Twitter, President Trump’s threat of additional tariffs on China, China’s warning of retaliation against the U.S. and the hawkish Fed monetary policy statement.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 7166.75 will signal a resumption of the downtrend. The main trend will change to up on a move through 7530.00.
The minor trend is also down. A trade through 7467.00 will change the minor trend to up.
The short-term range is 7530.00 to 7166.75. Its retracement zone at 7348.50 to 7391.25 is the primary upside target and resistance.
The main range is 6956.00 to 7530.00. The market is currently testing its retracement zone at 7243.00 to 7175.25. This zone is controlling the longer-term direction of the index.
Daily Swing Chart Technical Forecast
Based on the early trade, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the main 50% level at 7243.00.
A sustained move over 7243.00 will indicate the presence of buyers. If this move generates enough upside momentum, we could see a drive into 7348.50 to 7391.25. Since the main trend is down, sellers are likely to come in on a test of this zone.
A sustained move under 7243.00 will signal the presence of sellers. This could spike the market into the main Fibonacci level at 7175.25. Watch for a technical bounce on the first test of this level.
A failure at 7175.25 will indicate the selling is getting stronger. If this week’s low at 7166.75 fails then look for an acceleration to the downside. The daily chart shows there is plenty of room to the downside with the June 28 bottom at 6956.00 the next major downside target.