E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 26, 2015 Forecast

September E-mini NASDAQ-100 Index futures are called better this morning based on the pre-market trade. The index appears to have survived Monday’s sharp all-day break and Tuesday’s late session sell-off. If the index is consolidating then it may be setting up for a possible retracement of the current six day collapse.

The current price is 4113.00. Its first support is a long-term Fibonacci level at 4082.00. The next support angle comes in at 3924.50. This is followed by the low of the week at 3908.25.

A failure to hold 3908.25 could trigger another steep decline into another angle at 4189.50 and the October 16, 2014 contract low at 3708.50.

A sustained move over the major Fibonacci level at 4082.00 will signal the presence of buyers. The price cluster at 4140.25 to 4149.00 is the next upside target. This is followed by another price cluster at 4189.50 to 4197.25.

The daily chart begins to open up to the upside over 4197.25 with the next target a price zone at 4241.00 to 4319.50. A move into this zone will complete a 50% to 61.8% retracement of the break from 4573.50 to 3908.25.

Watch the price action and read the order flow at 4082.00. Trader reaction to this price will tell us whether the bulls or the bears have control today.