E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Fear of Fed Tightening Weighing on Sentiment

September E-mini NASDAQ-100 Index futures are trading lower late in the session on Friday as investors booked profits ahead of the weekend a day after hitting another record high.

Today’s better-than-expected U.S. Non-Farm Payrolls report, while signaling a strengthening labor market, also brought the Federal Reserve one step closer to tightening its loose policy.

This is not necessarily good news for technology stocks because higher interest rates tend to have a negative effect on the future earnings of capital intensive companies.

At 17:29 GMT, September E-mini NASDAQ-100 Index futures are trading 15092.75, down 75.00 or -0.49%.

Non-Farm Payrolls increased by 943,000 jobs in July after rising 938,000 in June, the Labor Department said in its closely watched employment report on Friday, pushing unemployment down to 5.4% and suggesting the economy maintained its strong momentum. Economists polled by Reuters had forecast payrolls increasing by 870,000 jobs.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15172.50 will signal a resumption of the uptrend. A move through 14445.00 will change the main trend to down.

The minor trend is also up. A trade through 14774.25 will change the minor trend to down. This will shift momentum to the downside. A new minor top was formed at 15172.50.

The minor range is 14774.25 to 15172.50. Its 50% level or pivot at 14973.25 is the first downside target and potential support.

The short-term range is 14445.00 to 15172.50. Its 50% level at 14808.75 is the last potential support level before the 14774.25 minor bottom.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index into the close will likely be determined by trader reaction to 15172.50 and 15047.25.

Bullish Scenario

A sustained move over 15172.50 will indicate the presence of buyers. This could trigger an acceleration to the upside if the buying volume is strong enough.

Bearish Scenario

A sustained move under 15047.25 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first pivot at 14973.25.