E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 14775.50 Sets Direction into Close

September E-mini NASDAQ-100 Index futures are trading nearly flat shortly after the mid-session on Wednesday as investors awaited minutes from the Federal Reserve’s meeting after the central bank took a more hawkish tone last week.

The central bank is expected to offer clues on how it may begin to pare its large bond-buying program amid signs of a quickening economic recovery.

At 17:36 GMT, September E-mini NASDAQ-100 Index futures are trading 14791.75, up 16.25 or +0.11%.

Yields on the U.S. 10-year notes fell to 1.308% and were on track for a seventh straight session of declines, pressuring rate-sensitive banking stocks.

Mega-cap technology names Facebook Inc, Alphabet Inc, Amazon.com Inc, Microsoft Corp and Apple Inc gained between 0.1% and 1.5%, as their value rests heavily on future earnings, which are discounted more deeply when bond returns go up.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 14883.75 will signal a resumption of the uptrend. The main trend will change to down on a trade through 13451.25. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is vulnerable to a closing price reversal top.

The minor trend is also up. A trade through 14471.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 14471.00 to 14883.75. Its pivot at 14677.25 is potential support.

Additional pivot price support is lined up at 14421.00 and 14357.00.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 14775.50.

Bullish Scenario

A sustained move over 14775.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a retest of 14883.75. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 14775.50 will signal the presence of sellers. The first downside target is the pivot at 14677.25. Taking out this level could trigger an acceleration into the minor bottom at 14471.00, followed by the pair of 50% levels at 14421.00 and 14357.00.

Side Notes

A close under 14775.50 will form a closing price reversal top. If confirmed, then look for the start of a 2 to 3 day correction.