E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 28, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading lower. The market is being pressured by a drop in Amazon stock. Traders also don’t seem to be too impressed with today’s GDP data. The price action suggests investors may be taking profits ahead of the end of the month. Perhaps they are thinking about an August vacation.

Technical Analysis

The main trend is down according to the minor swing chart. The trend turned down on Thursday when sellers took out the swing bottom at 5890.50. Yesterday’s sell-off also produced a potentially bearish closing price reversal top which tends to indicate a shift in momentum to down.

A trade through 5844.75 will confirm the closing price reversal top and signal a resumption of the downtrend. A move through 5995.75 will negate the chart pattern and turn the main trend to up.

The short-term range is 5995.75 to 5844.75. Its 50% level or pivot is 5920.25.

The main range is 5560.25 to 5995.75. Its retracement zone at 5778.00 to 5726.50 is the primary downside target.

Forecast

Look for a bearish tone as long as the index remains under the short-term pivot at 5920.25. Watch for a technical bounce on the first test of the uptrending angle at 5832.25. However, look for an acceleration to the downside if this angle fails as support.

A failure at 5832.25 could trigger an acceleration into the 50% level at 5778.00.

Overtaking the pivot at 5920.25 will indicate that buyers have returned, or that sellers have lightened up.

Also note, last week’s close was 5918.75. The market is currently trading under this price. This puts it in a weak position. A close under this price will produce a potentially bearish closing price reversal top. This could lead to the start of a 2 to 3 week correction.

Basically, look for an upside bias to develop on a sustained move over 5920.25 and for an acceleration to the downside if 5628.25 fails as support.