E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 31, 2018 Forecast

September E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Yesterday’s closing price reversal top strongly suggests the selling is greater than the buying at current price levels. If confirmed, this could lead to the start of a 2 to 3 day correction.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, yesterday’s reversal top is suggesting a shift in momentum is imminent. A trade through 2626.25 will confirm the reversal top chart pattern. This will also confirm the change in momentum.

A trade through 7697.00 will negate the closing price reversal top. This will also signal a resumption of the uptrend.

The main range is 7316.50 to 7697.00. If the reversal top is confirmed then look for a potential 2 to 3 day correction with its retracement zone at 7506.75 to 7461.75 the primary downside objective.

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 yesterday’s low at 7626.25.

Taking out 7626.25 will confirm the reversal top. If this move generates enough downside momentum then look out to the downside. We could see a break into the nearest uptrending Gann angle at 7508.50, followed by the retracement zone at 7506.75 to 7461.75. Since the main trend is up, buyers could come in on a test of this area.

The failure to confirm the reversal top will indicate the presence of buyers. If this generates enough upside momentum then we could see a retest of yesterday’s high at 7697.00. Taking out this level could trigger a further rally into a steep uptrending Gann angle at 7700.50.

Crossing to the strong side of the Gann angle at 7700.50 will put the index in an extremely bullish position.