E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 30, 2018 Forecast

September E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. Profit-taking and end-of-the-month position-squaring may be behind the early selling pressure. Investors are also taking a breather after posting a week of record highs. Fundamentally, investors are concerned about trade negotiations with Canada. Volume is expected to be light as investors prepare for the long U.S. holiday week-end.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7674.50 will signal a resumption of the uptrend.

The minor trend is also up. A trade through yesterday’s low at 7581.00 will make 7674.50 a new minor top. This will be an early sign of weakness.

Due to the prolonged move up in terms of price and time, investors should also watch for a potentially bearish closing price reversal top.

The main range is 7316.50 to 7674.50. If there is a correction then we could see a pullback into its retracement zone at 7495.50 to 7453.25. Since the main trend is up, buyers could step in on a test of this zone.

Daily 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 steep uptrending Gann angle at 7668.50.

A sustained move over 7668.50 will indicate the presence of buyers. Taking out 7674.50 will indicate the buying is getting stronger. There is no resistance at this time.

A sustained move under 7668.50 will signal the presence of sellers. The first target is yesterday’s low at 7581.00. Taking out this low will change the higher-high, higher-low chart pattern.

If the selling pressure increases on a move under 7581.00 then look for a potential acceleration to the downside with potential targets a 50% level at 7495.50, a steep uptrending Gann angle at 7492.50 and a Fibonacci level at 7453.25.