E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 14, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly after the opening. The NASDAQ is outperforming the other major indexes. The Dow and S&P 500 Index are being supported by sharp rises in JPMorgan Chase and Goldman Sachs. The NASDAQ is attracting buyers due to the weaker-than-expected U.S. consumer inflation and retail sales data.

All major indexes are drawing support from the idea that lower inflation will likely mean easier monetary policy and lower interest rates for a longer-period of time. The rally seems to be limited early in the session, suggesting that the news about the weak inflation may have been priced into the market on Wednesday when Fed Chair Yellen expressed concerns about weak price appreciation.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the bottom at 5560.25 on July 5. The main trend will change to up on a trade through 5852.00. If this move generates enough upside momentum, we could see a surge into the next top at 5907.50 over the near-term.

Forecast

The index is trading on the strong side of a key retracement zone at 5734.00 to 5775.00. This is helping to give the index its strong upside bias. Traders should treat this area as support.

Watch the price action and read the order flow on a test of 5775.00. This will tell us if the buyers are coming in to defend the rally.

If 5775.00 fails as support then we could see a further acceleration into 5734.00.

The market is being driven by momentum and news so the rally will stop when the momentum buying subsides. The best indication of a top today will be a closing price reversal top chart pattern, or higher-high, lower-close. Therefore, also keep an eye on yesterday’s close at 5797.50. Breaking below this level may be an early signal that the selling is greater than the buying at current price levels.