E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Rally Fizzles as Apple Re-Closes Stores

September E-mini NASDAQ-100 Index futures finished lower on Friday after giving up earlier gains after Apple said it was closing some stores due to a rise in coronavirus cases, stoking fears of further restrictions and possibly another lockdown of the economy.

Apple Inc. said it would re-close nearly a dozen stores across four states where cases of the coronavirus have spiked, showing wariness in the business community about the safety of reopening in some places. Apple said it’s reclosing a total of 11 stores in Florida, Arizona, South Carolina and North Carolina. All of the stores had been re-opened since Apple initially closed them in March amid the outbreak. Shares of the tech giant traded 0.5% lower.

On Friday, September E-mini NASDAQ-100 Index futures settled at 9923.50. In the cash market, the tech-heavy NASDAQ outperformed, rising 3.7%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, the closing price reversal top is an early sign that momentum may be getting ready to shift to the downside.

A trade through 10140.00 will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 9368.25.

The minor trend is also up. A trade through 9866.50 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 9368.25 to 10112.50. Its retracement zone at 9740.25 to 9652.50 is the nearest downside target zone. Since the main trend is up, buyers could come in on a test of this area.

Short-Term Outlook

The good news is the September E-mini NASDAQ-100 Index futures contract closed within striking distance of its all-time high at 10140.00. The bad news is that momentum may be shifting to the downside. The scary news is that a bad announcement regarding COVID-19 from just one company like Apple can kill a rally and reverse the market lower.

The bad news may not actually turn out to be bad news if buyers re-emerge following a test of 9740.25 to 9652.50. However, I do believe that trader reaction to this zone will be a major determinant as to whether we see new highs next week or a further decline into 9490.50 to 9337.25.