E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Shifts to Down Under 9843.50

September E-mini NASDAQ-100 Index futures are trading lower late in the session on Wednesday as investors trimmed positions on concerns that the speed of the economic recovery would be slowed by rising coronavirus cases. Earlier in the week, the top White House infectious disease official Anthony Fauci said the next two weeks could be critical in containing the outbreak.

At 18:40 GMT, September E-mini NASDAQ-100 Index futures are trading 10007.50, down 188.50 or -1.85%.

Sellers were also influenced by a report from the International Monetary Fund that said the pandemic was causing wider and deeper damage to economic activity than first thought, and it slashed its forecast for a contraction in global output to 4.9% from 3.0%.

Shares of Dell bucked the trend, gaining 4.1% after the Wall Street Journal reported that the company was examining options including a spinoff for its roughly $50 billion stake in VMware Inc. as the PC maker seeks to boost the value of its shares.

Apple shares were down 4.9% as the Department of Justice and state attorneys general are looking at an investigation that would focus on the company’s App Store, according to a Politico report.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 10296.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 9368.25.

The minor trend is up. The new minor top is 10296.25. A trade through 9843.50 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 9368.25 to 10296.25. Its 50% level or pivot at 9832.25 is the first potential support level.

The short-term range is 8841.00 to 10296.25. If the minor trend changes to down then its retracement zone at 9568.50 to 9397.00 will become the next downside target zone.

Short-Term Outlook

One day down, no matter how large the move, does not change the trend. Our first warning of lower prices to follow will be the failure of the minor pivot at 9832.25.

The next big test will be a break into the short-term retracement zone at 9568.50 to 9397.00. Since the main trend is up, buyers are likely to come in on a test of this area. Furthermore, it’s the last support before the main bottom at 9368.25. Buyers are going to try to defend the trend.

The daily chart indicates that 9368.25 is a potential trigger point for an acceleration to the downside. There is nearly 500 points between that level and the next main bottom.

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