E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 7, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly higher shortly before the cash market opening. The market tried to rally earlier in the session but ran into sellers.

The main trend is up according to the daily swing chart, however, momentum has been sideways since the formation of the closing price reversal top at 5995.75 on July 27.

The short-term range is 5995.75 to 5844.75. Its 50% level or pivot is 5920.25. This price is controlling the short-term direction of the market along with a steep uptrending angle at 5928.25.

Overtaking 5920.25 will signal the presence of buyers. Overcoming and sustaining the rally over 5928.25 will indicate the buying is getting stronger.

The trigger point for a surge to the upside may be the minor top at 5947.50. Given the extremely low volume and volatility, we won’t know how important this top is until we see the price action and order flow on a test of this level. For all we know, there may be a huge sell order sitting at 5948.00. So we can’t just buy a breakout over this level.

I think the safest way to play a breakout over this level is to wait until 5947.50 goes bid. If this occurs and the buying volume continues to increase then we may see a spike up to 5995.75 over the near-term.

A failure to overcome 5920.25 will signal the presence of sellers. If the selling pressure increases then the market could plunge into its next target at 5844.75. This is another trigger point for an acceleration into at least 5778.00.

I know the chart is screaming for volatility but unless you know what side the volume is on, it’s difficult to call a direction. The earlier price action suggests there is a big stopper at 5921.25 to 5928.25. The index won’t rally unless this big seller lifts.

Besides looking a price and chart patterns, you may want to take a peek at the Time & Sales tape to see the size of the trades.