E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – August 8, 2017 Forecast

September E-mini NASDAQ-100 Index futures are expected to open slightly lower based on the pre-market trade. Volume and volatility continue to remain well-below average for an eighth consecutive session.

The main trend is up according to the daily swing chart. However, the closing price reversal top at 5995.75 on July 27 has stopped the upside momentum.

A trade through 5995.75 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through 5844.75 will confirm the closing price reversal top. This could lead to a 2 to 3 day break with 5778.00 the initial downside target.

The short-term range is 5995.75 to 5844.75. Its 50% level or pivot is 5920.25. This price appears to be controlling the short-term direction of the market. Basically, look for an upside bias on a sustained over this level and a downside bias on a sustained move under it.

Traders should also pay attention to the steep uptrending angle, moving up at a rate of 16 points per day from the 5560.25 main bottom. This angle comes in at 5944.25 today.

Without volume and volatility it’s difficult to buy strength and sell weakness. We can’t predict when they will return to normal. It could be one day, or 3 weeks.

However, we can say that the conditions are ripe for a rally on a sustained move over the angle at 5944.25 and a downside bias to develop on a sustained move under 5920.25.

If you prefer to buy support and sell resistance then you’ll want the index to sit inside the 5920.25 to 5944.25.

But if you like breakouts then watch the price action and read the order flow at 5920.25 and 5944.25. You just have to be careful selling weakness and buying strength if you don’t have volume to lean on.