E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Inside Move Indicates Investor Indecision

September E-mini NASDAQ-100 Index futures are trading slightly lower shortly before the close on Friday. The market is trading inside yesterday’s range which tends to indicate investor indecision and impending volatility.

The indecision is being fueled by the uncertainty over the outcome of the meeting between US President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Osaka, Japan over the weekend. The price action indicates that investors aren’t sure what to expect. In the best case scenario, a deal is make to resume the trade talks between the two economic powerhouses. In the worst case, there is no deal and Trump imposes additional tariffs on China.

At 19:00 GMT, September E-mini NASDAQ-100 Index futures are at 7676.75, down 13.75 or -0.18%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been drifting lower since June 20. Taking out 7821.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through 7446.25.

The short-term range is 7446.25 to 7821.00. Its retracement zone at 7633.50 to 7589.50 is support. It stopped the selling pressure twice during the week.

The main range is 7910.75 to 6969.00. Its retracement zone at 7551.00 to 7439.75 is controlling the longer-term direction of the index.

Daily Technical Forecast

Although the index is lower on Friday, the low volume and volatility and the inside move indicate a lack of conviction.

If there is a rally late in the session then look for buyers to take a run at the downtrending Gann angle at 7730.75. Overtaking this angle will indicate the buying is getting stronger with the next targets coming in at 7798.25 and 7820.75.

If the sellers continue to press the market lower then look for a drive into a short-term 50% level at 7633.50, a short-term uptrending Gann angle at 7622.25 and a support cluster at 7789.50 to 7577.00.