E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Profit-Taking Helps Form Closing Price Reversal Top

September E-mini NASDAQ-100 Index futures settled lower on Thursday after investors took profits ahead of Friday’s important U.S. Non-Farm Payrolls report that could determine whether the Federal Reserve will start to pare back stimulus. The index started the session firm, but the buying faded quickly and prices retreated throughout the session.

At 20:50 GMT, September E-mini NASDAQ-100 Index futures are trading 14540.50, down 8.50 or -0.06%.

Micron Technology Inc slid by 5.7% following a report that Texas Instruments would buy Micron’s Lehi, Utah, factory for $900 million.

In economic news, jobless claims continued their downward trajectory according to the Labor Department, touching their lowest level since the pandemic shutdown, and a report from Challenger, Gray & Christmas showed planned layoffs by U.S. firms were down 88% from last year, hitting a 21-year low.

Activity at U.S. factories expanded at a slightly decelerated pace in June, according to the ISM Purchasing Managers’ Index (PMI), with the employment component dipping into contraction for the first time since November.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 14606.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 13451.25.

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 first minor range is 13958.50 to 14606.25. Its 50% level at 14282.25 is the first downside target.

The second minor range is 13830.25 to 14606.25. Its 50% level at 14218.25 is another downside target.

Daily Swing Chart Technical Forecast

On Thursday, the index formed a potentially bearish closing price reversal top. A trade through 14471.00 will confirm the chart pattern.

Bullish Scenario

A sustained move over 14471.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into 14606.25. Taking out this level will negate the closing price reversal top and signal a resumption of the uptrend.

Bearish Scenario

A sustained move under 14471.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling pressure to possibly extend into 14282.25 to 14218.2 over the next 2 to 3 trading sessions.