E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 16, 2018 Forecast

Individual technology stocks performed well early in the session, but that wasn’t enough to sustain the gains in the broad-based NASDAQ cash index. Shares of Amazon hit an all-time high on Monday to lead the large-cap tech stocks higher, but other stocks in the index struggled to gain footing. Amazon investors were responding to the start of Prime Day, a major event for the online retailer. Last year’s Prime Day surged 60 percent and reached a record.

At 1450 GMT, September E-mini NASDAQ-100 Index futures are trading 7384.25, down 8.75 or -0.12%.

Earlier in the session, Amazon rose 0.7 percent, followed by Apple, up 0.6 percent and Facebook, up 0.5 percent. Netflix was up only 1 percent as investors awaited earnings results.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7414.25 will signal a resumption of the uptrend. A move through 7367.00 will make 7414.25 a new minor top.

Due to the prolonged move up in terms of price and time, traders should watch for a potentially bearish closing price reversal top chart pattern. This will begin to form when buyers take out 7414.25 then sellers drive the market back through Friday’s close at 7393.00, erasing the gains and turning lower for the session. This pattern could trigger the start of a 2 to 3 day correction.

The short-term range is 7204.50 to 7414.25. If the selling picks up momentum under 7367.00, we could see a break into its 50% level or pivot at 7309.25.

Daily Technical Forecast

Based on the inside move chart pattern, which suggests investor indecision and impending volatility, the direction of the September E-mini NASDAQ-100 Index the rest of the session will be determined by trader reaction to 7414.25 and 7367.00.

A sustained move over 7414.25 will indicate the presence of buyers. There is no resistance so this could trigger another acceleration to the upside. If it fails and prices fall be 7393.00 then look for a possible reversal top.

A sustained move under 7367.00 will signal the presence of sellers. This could also trigger an acceleration to the downside with the main target a 50%/Gann Angle support cluster at 7309.25 to 7308.00. Since the main trend is up, buyers could come in on a test of this area. If 7308.00 fails with high volume then look out to the downside. This could fuel the start of an even bigger correction.