E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Be Ripe for Closing Price Reversal Top

September E-mini NASDAQ-100 Index futures are inching lower after hitting a record high on Monday as technology stocks dumped after the Federal Reserve’s dovish comments eased fears of a sudden tapering in monetary stimulus and boosted optimism around an economic recovery.

At 01:23 GMT, September E-mini NASDAQ-100 Index futures are trading 15596.50, down 1.00 or -0.01%.

Fed Chair Jerome Powell said on Friday the central bank would continue to be cautious in its approach to tapering its massive pandemic-era stimulus, while reaffirming a steady economic recovery.

In stock related news, Apple Inc jumped 2.3% to an all-time high, while Microsoft Corp, Amazon.com, Google-owner Alphabet Inc rose between 0.9% and 1.3%, helping the tech-heavy NASDAQ outperform the S&P 500 and the Dow.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15617.75 will signal a resumption of the uptrend. A move through 14710.50 will change the main trend to down.

The minor trend is also up. A trade through 15255.25 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 15255.25 to 15617.75. Its retracement zone at 15436.50 to 15393.75 is the nearest support area.

The short-term range is 14710.50 to 15617.75. If the minor trend changes to down then look for the selling to possibly extend into its retracement zone at 15164.00 to 15057.00.

The retracement zones will move up as the market moves higher.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to 15606.50.

Bullish Scenario

A sustained move over 15606.50 will indicate the presence of buyers. Taking out 15617.75 will indicate the buying is getting stronger. This could trigger another acceleration to the upside since there is no resistance.

Bearish Scenario

A sustained move under 15606.50 will signal the presence of sellers. If this move can generate enough downside momentum then look for the selling to possibly extend into the minor retracement zone at 15436.50 to 15393.75. Since the main trend is up, buyers are likely to come in on the first test of this area.

If 15393.75 fails as support then look for the selling to possibly extent into the minor bottom at 15255.25.

Side Notes

Taking out 15617.75 then closing lower for the session will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.