E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Post Fourth Straight Weekly Gain

September E-mini NASDAQ-100 Index futures are trading sharply higher late Friday after failing to follow-through to the downside, following the previous session’s closing price reversal top. Nonetheless, the tech-heavy index is still in a position to post its fourth straight week of gains.

The index is being underpinned by data this week showing a slower-than-expected rise in the consumer price index and a surprise drop in producer prices last month.

The inflation news was enough to encourage investors to price in a less-hawkish Fed, with Fed Fund futures showing a 55.5% chance of Fed policymakers raising rates by 50 basis points when they meet in September, instead of 75 basis points.

At 18:58 GMT, September E-mini NASDAQ-100 Index futures are at 13536.50, up 225.25 or +1.69%. The Invesco QQQ Trust is at $330.54, up $6.46 or +1.99%.

In economic news, new data showed U.S. consumer sentiment ticked further up in August from a record low this summer and American households’ near-term outlook for inflation eased again on softening gasoline prices.

In stock related news, Tesla Inc is up 4.50% and Applied Materials is posting a 4.60% gain. Stocks that were beat up earlier in the week, Micron Technology and NVIDIA Corp are outperforming with 4.36% and 4.27% advances.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 13575.00 will negate Thursday’s closing price reversal top. Taking out the main top at 13582.75 will reaffirm the uptrend.

The minor trend is also up. A trade through 12963.25 will change the minor trend to down. This will shift momentum.

The minor range is 12963.25 to 13575.00. Its 50% level or pivot at 13269.00 is support. The next upside target is a long-term 50% level at 13812.00.

Short-Term Outlook

Trader reaction to a pivot at 13430.00 will determine the direction of the September E-mini NASDAQ-100 Index into the close on Friday.

Bullish Scenario

A sustained move over 13430.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible surge into 13575.00 and a possible breakout over 13582.75 with 13812.00 the next likely upside target.

Bearish Scenario

A sustained move under 13430.00 will signal the presence of sellers. This could trigger a late session break into the minor pivot at 13269.00, followed by the main Fibonacci level at 13082.50.