E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 24, 2015 Forecast

September E-mini NASDAQ-100 Index futures are called sharply lower based on the pre-market trade. Today will be all about momentum and whether the bears can continue to control the downside by forcing weak longs to abandon their positions.

The key number to watch is the contract range’s Fibonacci level at 4082.00. This price is likely to act like a pivot so watch the price action and read the order flow at this number all day.

Overcoming 4082.00 and sustaining the move will suggest that sellers overshot their downside target. It will also indicate that value-seekers have returned to the market.

A sustained move over 4082.00 will indicate the presence of buyers. Any rally is likely to be labored at first because buyers will have to overcome an angle at 4138.75, a major 50% level at 4197.25 and a downtrending angle at 4213.00 before the index can start to accelerate to the upside.

The first target over 4213.00 could trigger a surge into the next downtrending angle at 4317.50. This is even a bigger trigger point for an upside breakout into another angle at 4445.50.

A sustained move under the Fibonacci level at 4082.00 will continue the bearish tone set by the pre-market sell-off. The next target is an uptrending angle at 3923.00. The next angle under this is 3817.50. This is the last major angle before the October 16, 2014 main bottom at 3708.50.

Keep an eye on the price action at 4082.00. This price will determine whether the bears are tightening their grip on investors, or if value-seeking buyers have regained control.