E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Deck Stacked in Favor of Bulls

September E-mini NASDAQ Composite Index futures are trading higher at the mid-session after hitting a new all-time high earlier in the session. The index was boosted by strong technology shares as well as U.S. data that highlighted the pockets of strength in the U.S. economy.

Business activity snapped back to the highest since early 2019 in the United States in August as companies in both the manufacturing and services sectors saw a resurgence in new orders, HIS Markit surveys showed.

Another report showed U.S. home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.

At 17:13 GMT, September E-mini NASDAQ Composite Index futures are trading 11535.25, up 58.00 or +0.51%.

Apple Inc gained another 3.9%, rising for the fourth straight day. Tesla’s shares added another 2.6% after surging past the $2,000 mark on Thursday for the first time and extending its rally ahead of an upcoming share split.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. The main trend will change to down on a trade through the last main bottom at 10845.50.

The minor trend is also up. A trade through 11221.50 will change the minor trend to down. This will also shift momentum to the downside.

Daily Outlook

The main trend is up, momentum is strong and there is no resistance. So the deck is stacked in favor of the bulls. Although there are no headwinds, due to the prolonged move up in terms of price and time, traders still have to worry about a potentially bearish closing price reversal top.

This chart pattern won’t change the main trend to down, but it could trigger the start of a 2 to 3 day correction or a 50% correction of the last upswing.

This week, the index posted a closing price reversal top on Wednesday. It was confirmed on Thursday, but negated on Friday so there was very little damage to the chart pattern. Nonetheless, eventually one will take place that changes the trend to down. So it’s something that should be monitored. Not necessarily to get short, but to protect the open profit. Otherwise, you risk giving back a lot of your gains.

For a look at all of today’s economic events, check out our economic calendar.