E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Cautious Trade Ahead of Earnings, Fed Decisions

September E-mini NASDAQ-100 Index futures eked out another record closing high for a second straight session on Monday, backed by optimistic investors betting on a slew of strong earnings reports from several tech heavyweights throughout the week. Nonetheless, gains were kept in check by general nervousness ahead of the start of a two-day Federal Reserve policy meeting on Tuesday.

On Monday, September E-mini NASDAQ-100 Index futures settled at 15117.75, up 19.75 or +0.13%.

This week’s quarterly reports include Apple Inc, Microsoft Corp, Amazon.com Inc and Google-parent Alphabet, the four largest U.S. companies by market value. After the close, Tesla reported second-quarter earnings that beat on both the top and bottom lines. Shares rose about 2% after-hours.

In other stock related news, Zoom Video Communications Inc was the big winner for the session, closing at $373.14, up 13.91 or +3.872. They were followed by Intel Corp and Marriott International Inc, which rose 2.47% and 2.38% respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15134.00 will signal a resumption of the uptrend. A move through 14445.00 will change the main trend to down.

The minor range is 14445.00 to 15134.00. Its 50% level at 14789.50 is potential support.

Additional support levels are 14546.25 and 14482.00, followed by the main bottom at 14445.00.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index early Tuesday is likely to be determined by trader reaction to 15117.75.

Bullish Scenario

A sustained move over 15117.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of 15134.00. This is a potential trigger point for an acceleration to the upside. However, below average volume may prevent a strong breakout move.

Bearish Scenario

A sustained move under 15117.75 will signal the presence of sellers. The first downside target is 15038.75. Taking out this level will turn 15134.00 into a new minor top. If this move is able to generate enough downside momentum then look for the selling pressure to possibly extend into the pivot at 14789.50. Since the main trend is up, buyers are likely to come in on the first test of this level.

Side Notes

Taking out 15134.00 then closing lower on Tuesday will form a potentially bearish closing price reversal top. If confirmed, this won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction.