E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Post Closing Price Reversal Top

September E-mini NASDAQ-100 Index futures are trading lower late in the session on Friday, pressured by Tesla and other technology-related stocks after an unexpectedly strong jobs U.S. jobs report shattered recent optimism that the Federal Reserve might ease its aggressive campaign to reign in decades-high inflation.

At 18:05 GMT, September E-mini NASDAQ-100 Index futures are at 13191.00, down 137.00 or -1.03%. The Invesco QQQ Trust ETF (QQQ) is trading $321.79, down $2.61 or -0.81%.

A fresh jobs report showed U.S. employers hired far more workers than expected in July, the 19^th straight month of payrolls expansion, with the unemployment rate falling to a pre-pandemic low of 3.5%.

In stock related news, Tesla tumbled 6.6% and weighed heavily on the NASDAQ Composite. Facebook-owner Meta Platforms lost 2% and Amazon fell 1.2%, also pulling down the index.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 13384.50 will signal a resumption of the uptrend. A move through the nearest main top at 13582.75 will reaffirm the uptrend.

The minor trend is also up. A trade through 12814.75 will change the minor trend to down. This will also shift momentum to the downside.

The intermediate range is 14327.50 to 11068.50. The index is trading on the strong side of its retracement zone at 13082.50 to 12698.00, making it support.

The nearest resistance is a longer-term retracement zone at 13812.00 to 14459.50.

Short-Term Outlook

Trader reaction to 13327.00 will determine the direction of the September E-mini NASDAQ-100 Index into the close on Friday.

Bearish Scenario

A sustained move under 13327.00 will indicate the presence of sellers. If this move creates enough downside momentum then look for a test of the intermediate Fibonacci level at 13082.50. A trade through this level will put the index in a weak position with the intermediate 50% level at 12698.00 the next key target.

Bullish Scenario

A sustained move over 13327.00 will signal the return of buyers. This could generate the upside momentum needed to challenge the intraday high at 13384.50. Taking out this level will indicate the buying is getting stronger with 13582.75 the next target.

Side Notes

A close under 13327.00 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.