E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 20, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher. Low interest rates in the U.S. are providing some of the firepower for the rally. Strong earnings are also helping to drive the index higher.

Technically, the main trend is up and there is no resistance. Top-pickers and those traders selling new highs because of useless overbought oscillators and indicators keep feeding the bulls.

This market is going to continue to trend higher as long as there is dumb money out there attempting to pick the top. That’s the best answer I have for the rally and when it will end. As long as money is coming in on the buy side and there are investors willing to try to stop the rally with multiple sell orders, this market is going to move higher.

I say you can’t fight momentum and make up resistance so the market is going to stop going up when the selling becomes greater than buying. The faster you can see this on intraday charts, the earlier you’ll get in to short. If you don’t want to read the order flow then you’ll have to wait for an intraday or daily closing price reversal top.

At this point, the trend is your friend. And a trend in motion is likely to remain in motion until acted upon by an outside force. That being said, don’t expect a top until the bulls stop buying and the selling becomes greater than the buying. There is no magic number.

I can’t also say this, you’ll do better playing the short-side after an intraday or daily reversal top then trying to pick a top by selling new highs.

Technical Analysis

The index is walking up a steep uptrending angle for the eleventh straight day. This angle is at 4912.25 today. Look for the bullish tone to continue as long as the market remains above this angle.

A sustained move under 4912.5 will indicate the presence of sellers. But I think a close below the angle will carry more weight towards the start of a correction.