E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 27, 2018 Forecast

The technology sector is recovering today from Thursday’s steep sell-off. The market is responding to Amazon’s mixed earnings report that was released after yesterday’s close. Some analysts are saying that today’s price action indicates that Amazon is decoupling from the other FAANG stocks – Facebook, Apple, Netflix and Google (Alphabet).

At 1300 GMT, September E-mini NASDAQ-100 Index futures are trading 7443.50, up 12.75 or +0.17%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7530.00 will signal a resumption of the uptrend. A move through 7311.50 will change the main trend to down. The next support will be the main bottom at 7292.50.

Yesterday’s steep sell-off did a little damage to the chart. It made 7530.00 a minor top. However, today’s early strength made 7362.00 a new minor bottom. A trade through this bottom will change the minor trend to down. This will also shift momentum to the downside.

The main range is 6956.00 to 7530.00. Its retracement zone at 7243.00 to 7175.25 is major support.

The intermediate range is 7292.50 to 7530.00. Its Fibonacci level at 7383.25 is support.

The first short-term range is 7311.50 to 7530.00. Its 50% level at 7420.75 is also acting like support.

The second short-term range is 7530.00 to 7362.00. Its retracement zone at 7446.00 to 7466.00 is acting like resistance.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7420.75.

A sustained move over 7420.75 will indicate the presence of buyers. This could lead to a test of 7446.00 to 7466.00.

Taking out 7466.00 will indicate the buying is getting stronger. If this move generates enough upside momentum then look for the rally to continue into 7530.00.

A sustained move under 7420.75 will signal the presence of sellers. This could trigger a move into 7383.25, followed by 7362.00.

Look for momentum to shift to the downside if 7362.00 fails as support. This could lead to a drive into 7311.50 then 7292.50.

Despite Thursday’s steep sell-off, the index is still in a position to close higher for the week.