E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – No Resistance, but Needs to Close Over 14263.00

September E-mini NASDAQ-100 Index futures hit another record high in the overnight market early Thursday as traders continue to downplay the impact of rising inflation and potentially earlier than expected rate hikes on future earnings.

On Wednesday, the index climbed to a record-high close, fueled by a rally in Tesla, Inc. Gains in Nvidia Corp and Facebook Inc extended a recent rebound in top-shelf growth stocks that fell out of favor in recent months as investors focused on companies expected to do well as the economy recovers from the pandemic.

At 09:29 GMT, September E-mini NASDAQ-100 Index futures are trading 14351.50, up 88.50 or +0.62%.

Tesla jumped 5.3% after the electric vehicle maker said it had opened a solar-powered charging station with on-site power storage in the Tibetan capital Lhasa, its first such facility in China. That trimmed the stock’s loss in 2021 to about 7%, Reuters reported.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the current intraday high at 14358.75 will signal a resumption of the uptrend.

A trade through 13451.25 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 13958.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 13958.50 to 14358.75. Its 50% level at 14158.50 is the nearest support. This level will continue to move up as the market moves higher.

The second minor range is 13830.25 to 14358.75. Its 50% level at 14094.50 is another support level. It will also continue to move up.

A third minor 50% level comes in at 13905.00.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to 14263.00.

Bullish Scenario

A sustained move over 14263.00 will indicate the presence of buyers. Taking out 14358.75 will indicate the buying is getting stronger. Since we are at all-time highs, there is no resistance.

Bearish Scenario

A sustained move under 14263.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the pair of pivots at 14158.50 to 14094.50.

Look for buyers on a test of the pivots, but if it fails then look for a potential acceleration to the downside with the next targets a minor bottom at 13958.50 and a 50% level at 13905.00.