E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Is Bearish Secondary Lower Top Forming?

September E-mini NASDAQ-100 Index futures are trading lower as we approach the mid-session. Nervous investors are squaring positions ahead of several key earnings reports this week, Federal Reserve monetary policy decisions and the start of a debate in Congress over additional fiscal stimulus funds.

NASDAQ Components Amgen, eBay, Starbucks report after the bell on Tuesday.

Apple Inc, Amazon.com Inc, and Alphabet Inc report later this week.

At 15:11 GMT, September E-mini NASDAQ-100 Index futures are trading 10602.00, down 80.00 or -0.83%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 10301.00 will signal a resumption of the downtrend. The main trend will change to up on a trade through the double-top at 11058.00 and 11058.50.

The short-term range is 11058.00 to 10301.00. Its retracement zone at 10679.50 to 10769.00 is resistance. This zone stopped the rally earlier today at 10758.50. The subsequent sell-off indicates a potentially bearish secondary lower top may be forming.

The minor range is 10301.00 to 10758.50. Trader reaction to its 50% level at 10529.75 will tell us if the selling is getting stronger.

The key support zone is 10393.50 to 10236.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 into the close is likely to be determined by trader reaction to 10529.75.

Bearish Scenario

A sustained move under 10529.75 will indicate the presence of sellers. This could trigger a plunge into 10393.50.

If 10393.50 fails to hold as support then look for the selling to possibly extend into 10301.00 and 10236.75. The latter is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over 10529.75 will signal that counter-trend buyers are coming in to support the market in an attempt to prevent a steep sell-off.

The first upside targets are a series of levels at 10679.50, 10758.50 and 10769.00.

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