E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 30, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly lower after surging to the upside in response to stronger-than-expected ADP private sector jobs data and robust quarterly preliminary GDP data. Traders are now waiting for President Trump to announce his tax reform plan.

Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the previous main top at 5884.00. However, the initial rally stalled at 5899.00.

Taking out 5899.00 later in the session will signal a resumption of the uptrend. This could create enough upside momentum to challenge the next main top at 5949.50.

The main range is 5995.75 to 5752.25. Its retracement zone is 5874.00 to 5902.75. This zone stopped the rally earlier and should be considered resistance.

The intermediate 50% level at 5850.75 and the short-term retracement zone at 5838.00 to 5823.75 should be considered support. Since the main trend is up, buyers could come in on a test of this zones.

Forecast

Based on the current price at 5867.50 and the earlier price action, the direction of the market is likely to be determined by trader reaction to the main 50% level at 5874.00.

A sustained move under 5874.00 will indicate the presence of sellers. This could lead to a labored break with potential downside targets at 5850.75, 5838.00 and 5823.75. The daily chart opens up to the downside under 5823.75 with the next major target a support cluster at 5778.00 to 5777.25.

A sustained move over 5874.00 will signal the presence of buyers. This could spike the index back to 5899.00 then 5902.75. Overtaking this level could trigger a move into 5949.50.

Watch the price action and read the order flow at 5874.00 all session. This will tell us if the buyers or sellers are in control.