E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 17, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. Earlier in the session, the index crossed the June 26 main top at 5852.00. This move changed the main trend to up according to the daily swing chart.

A sustained move over 5852.00 could trigger an acceleration to the upside if the buying volume increases on the move. This could fuel a continuation of the rally with the June 9 top at 5907.50 the next major upside target.

Now that the trend has turned up on the move through 5852.00, the buying is going to have to continue in order to sustain the rally. A sustained move over this price will be the first sign that new buyers are coming in to support the rally. They are going to try to turn the old top into a new bottom.

A sustained move under 5852.00 will indicate that sellers are retaking control and that the attempted breakout was fueled by short-covering, rather than new buying.

If the buyers continue to come in above 5852.00 then look for an eventual move into 5907.50. If the sellers retake control then we could see a pullback into the retracement zone at 5774.75 to 5733.75.

Today is the eighth day up from the last main bottom. This puts the index in the window of time for a potentially bearish closing price reversal top. A break back under Friday’s close at 5843.25 will indicate the presence of sellers.

If this occurs on an intraday basis then we could see selling pressure throughout the session. If it occurs on the close then we could see the start of a 2 to 3 day correction.