E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 25, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index is trading inside yesterday’s range which indicates investor indecision and impending volatility.

No one expects to hear anything major from Yellen and Draghi today regarding monetary policy. This may actually be bullish for stocks especially if Yellen presents a dovish front.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is starting to trend higher.

A trade through 5884.00 will turn the minor trend to up. This could generate some upside momentum. A move through 5949.50 will change the main trend to up.

A move through 5803.25 will shift momentum back to the downside. A trade through 5752.25 will signal a resumption of the downtrend.

The major support zone is 5778.00 to 5726.50. This zone stopped the selling at 5761.00 and 5752.25.

The main range is 5995.75 to 5752.25. Its retracement zone is 5874.00 to 5902.75. This zone is acting like resistance.

The intermediate range is 5949.50 to 5752.25. Its retracement zone is 5850.75 to 5874.00.

The short-term range is 5752.25 to 5884.00. Its retracement zone at 5818.00 to 5802.50 stopped the selling on Thursday at 5803.25.

Forecast

Based on the current price at 5857.00 and the earlier price action, the direction of the NASDAQ Index today is likely to be determined by trader reaction to the 50% level at 5850.75.

A sustained move over 5850.75 will indicate the presence of buyers. This could trigger a rally into 5874.00, 5884.00 and 5902.75.

The trigger point for a possible acceleration to the upside is 5902.75. Taking out this level could trigger a surge into 5949.50.

A sustained move under 5850.75 will indicate the presence of sellers. The next targets are 5818.00, 5803.25 and 5802.50.

The market starts to open up under 5802.50 with the next key targets 5778.00, 5752.25 and 5726.50.

It still looks choppy to me because of the extremely light volume. I expect investors to play both sides of the retracement levels unless Yellen is dovish. If that’s the case then look for a surge to the upside.