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James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

September E-mini NASDAQ-100 Index futures are trading sharply lower shortly after the cash market opening. The weakness is likely being fueled by follow-through selling related to last week’s plunge in shares of Facebook and Twitter. The unwinding of short Dow/long NASDAQ spreads could also be contributing to the price action.

Daily September E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turn down on Friday when sellers took out swing bottoms at 7311.50 and 7292.50.

The main range is 6956.00 to 7530.00. The index is currently testing its retracement zone at 7243.00 to 7175.25. Despite the downtrend, we could see a technical bounce on a test of this zone because it represents a value area.


Daily Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the 50% level at 7243.00 and the Fibonacci level at 7175.25.

Overtaking and sustaining a move over 7243.00 will indicate the presence of buyers. This could trigger a retest of the uptrending Gann angle at 7292.00, followed by the steep downtrending Gann angle at 7338.00.

Since the main trend is down, sellers could come in on a test of 7338.00. Overcoming this angle will indicate the buying is getting stronger with the next target angle coming in at 7434.00.

A sustained move under 7243.00 will signal the presence of sellers. This could drive the index into the Fib level at 7175.25. This is a potential trigger point for a break into the uptrending Gann angle at 7124.00. This is another trigger point for an acceleration into the next uptrending Gann angle at 7040.00. This is the last potential support angle before the 6956.00 main bottom.

Look for buyers to return on a sustained move over 7243.00 and for the selling pressure to increase under 7175.25.

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