E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 14954.00 to Sustain Upside Momentum
September E-mini NASDAQ-100 Index futures are trading higher at the mid-session on strong earnings from Google-parent Alphabet, as investors turned to the Federal Reserve for more guidance in the wake of rising inflation and the Delta variant on its monetary stimulus.
At 18:00 GMT, all eyes will be on the outcome of the Federal Reserve’s two-day meeting, with investors looking for comments on how the double whammy of rising inflation and a spike in COVID-19 cases would impact the central bank’s plan to potentially start withdrawing its stimulus.
At 16:25 GMT, September E-mini NASDAQ-100 Index futures are at 15016.00, up 68.25 or +0.46%.
In stock related news, Alphabet popped more than 4% after the tech giant posted quarterly results, registering a 69% jump in advertising.
Other tech-related components were mixed. Apple shares dipped 0.4% after CEO Tim Cook warned that silicon “supply constraints” will affect sales of the iPhone as well as the iPad. The company did beat top- and bottom-line estimates and said its iPhone sales surged 50% year over year.
On the other hand, Microsoft saw its shares rise 1% after reporting an earnings beat despite a dip in revenue from its Windows division.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 15134.00 will signal a resumption of the uptrend. A move through the last main bottom at 14445.00 will change the main trend to down.
The minor trend is also up. A new minor top was formed earlier in the week at 15134.00.
The minor range is 14445.00 to 15134.00. Its 50% level or pivot at 14789.50 is support. This level stopped the selling on Tuesday.
Additional support is a pair of 50% levels at 14546.25 to 14482.00.
Daily Swing Chart Technical Forecast
The direction of the September E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the pivot at 14789.50.
Look for a bullish tone as long as buyers can hold the index above 14789.50. If the move creates enough upside momentum then look for a surge into the record high at 15134.00.
The Fed is not expected to say anything major so after the initial reaction to their statement and Powell’s comments, we could get a strong reaction in the after-markets to earnings news from Qualcomm, Facebook and PayPal.
A sustained move under 14789.50 will signal the presence of sellers. If this move creates enough downside momentum then look for a sharp break possibly into a pair of 50% levels at 14546.25 and 14482.00. These are the last potential support levels before the 14445.00 main bottom.