E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 21, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading flat-to-lower shortly before the cash market opening. The market is also trading inside yesterday’s range, which suggests investor indecision and impending volatility.

The main trend is up according to the daily swing chart. A trade through 5938.50 will signal a resumption of the uptrend. A trade through 5897.00 will make 5938.50 a new minor top.

The nearest minor bottom is 5820.25. A trade through this price will change the minor trend to down.

Today is the 12 day up from the 5560.25 main bottom. This puts the index inside the window of time for a potentially bearish closing price reversal top. Typically, this type of top occurs inside a 7 to 10 day period, so the current rally is a little over-extended. All we need to day to form this chart pattern is a higher-high and a lower-close.

The index is also trading on the weak side of a steep uptrending angle that has been guiding the market higher since July 5. The angle, moving up at a pace of 32.00 points per day, comes in at 4944.25 today.

On July 18, sellers took out this angle, driving the market through it by 28.00 points. If sellers can take out 5944.25 by more than 28.00 today then this will overbalance price. This will be the first sign that the selling is greater than the buying. This could trigger an acceleration to the downside. Watch trader reaction to 5916.25.

Overcoming 5938.50 will indicate the presence of buyers. Crossing to the strong side of the steep angle at 5944.25 will put the index in a bullish position again.

Forecast

Taking out 5916.25 will overbalance price. This will be the first sign of weakness. Taking out yesterday’s low at 5897.00 will mean the selling is getting stronger. This could trigger the start of an acceleration to the downside.

Major downside targets today and over the near-term are 5820.25, followed by 5752.25 and 5749.25.

Overcoming and sustaining a move over 5944.25 will mean the buying is still strong.