E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 16, 2019 Forecast

September E-mini NASDAQ-100 Index futures are edging lower shortly after the cash market opening. Volume and volatility are below average for a fourth session despite the market hitting an all-time higher earlier in the day.

The price action suggests investors are keying in on the direction of interest rates, which will be determined by the Fed at its July 30-31 policy meeting. At this time, traders are pricing in a 100% chance of a rate cut.

Earnings season started on Monday with the major banks reporting. Earlier today, investors heard from Goldman Sachs and J.P. Morgan. Additionally, Johnson & Johnson reported. The tech stocks aren’t expected to report until next week.

At 14:14 GMT, September E-mini NASDAQ-100 Index futures are trading 7975.00, down 11.75 or -0.15%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out yesterday’s high. A trade through 7743.00 will change the main trend to down. The index is also in a position to post a potentially bearish closing price reversal top.

Daily Technical Forecast

Based on the early price action and the current price at 7975.00, the direction of the September E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 7986.75.

Bullish Scenario

A sustained move over 7986.75 will indicate the presence of buyers. Taking out today’s intraday high at 7969.75 will indicate the buying is getting stronger. This could trigger a surge into the uptrending Gann angle at 8063.00. Overtaking this angle will put the market in a strong position with the next target angle coming in at 8150.25. Crossing to the strong side of this angle will put the index in an extremely bullish position.

Bearish Scenario

A sustained move under 7986.75 will signal the presence of sellers. This could trigger a break into a pair of uptrending Gann angles at 7929.00 and 7903.00. Look for buyers to show up on a test of these angles.

If 7903.00 fails as support then look for an acceleration into a pair of uptrending Gann angles at 7823.00 and 7798.25. These are the last two support angles before the 7743.00 main bottom.

Overview

A close under 7986.75 will form a closing price reversal bottom. If confirmed, this could lead to a 2 to 3 day counter-trend break.