E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 31, 2017 Forecast

September E-mini December NASDAQ-100 Index futures are expected to open higher on Thursday. The index is being driven by end of the month bargain-hunting. Earlier today, weekly jobless claims came in at 236,000 as expected. The Core PCE, the Federal Reserve’s preferred measure of inflation, increased 1.4 percent in July on a year-over-year basis. This was below the 2.0 percent Fed target.

Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Wednesday on a trade through 5884.00. Today’s move through 5949.50 reaffirmed the uptrend. This puts the index on course to test a minor top at 5972.75 and the main top at 5995.75.

The current rally is all about momentum. The best chart pattern to stop the rally will be a closing price reversal top.

The main range is 5995.75 to 5752.25. Its retracement zone at 5902.75 to 5874.00 is new support. Trading on the strong side of this zone has put the index in a bullish position.

Forecast

The rally will continue to rally as long as the momentum stays strong. Crossing to the strong side of 5949.50 earlier today indicates the buying is getting stronger.

Falling back below 5949.50 will indicate that sellers have arrived. Crossing below yesterday’s close at 5935.00 will indicate the selling is getting stronger. This could lead to a move into 5902.75 to 5874.00. If this zone fails then look out to the downside because the next major support doesn’t come in until 5778.00 to 5726.50.

A close under 5935.00 will be a sign of weakness.