E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reversal Top Signaling Shift in Momentum to DownsideA close under 14156.25 will form a potentially bearish closing price reversal top on the daily chart.
September E-mini NASDAQ-100 Index futures are trading lower late Friday as investors worry the Federal Reserve could start raising rates sooner than expected.
Today’s selling was sparked by hawkish comments from St. Louis Federal Reserve President Jim Bullard, who told CNBC’s Squawk Box” it was natural for the Fed to tilt a little “hawkish” this week and that the first rate increase from the central bank would likely come in 2022.
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At 20:00 GMT, September E-mini NASDAQ-100 Index futures are at 14058.00, down 98.25 or -0.69%.
“We’re expecting a good year, a good reopening. But this is a bigger year than we were expecting, more inflation than we were expecting,” the central bank official said. “I think it’s natural that we’ve tilted a little bit more hawkish here to contain inflationary pressures.”
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. A trade through 13451.25 will change the main trend to down. This is highly unlikely today, but the index is setting up for a closing price reversal top.
A closing price reversal top won’t change the trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.
The minor trend is also up. A trade through 13830.25 will change the minor trend to down. This will shift momentum to the downside.
The minor range is 13830.25 to 14204.75. Its retracement zone at 14017.50 to 13973.25 is the first downside target and potential support.
The second minor range is 13451.25 to 14204.75. Its 50% level at 13828.00 is the next potential downside target. This price is a potential trigger point for an acceleration to the downside with 13555.50 the next likely downside target.
A close under 14156.25 will form a potentially bearish closing price reversal top on the daily chart. If confirmed early next week then look for the start of a minimum 2 to 3 day correction with potential downside targets coming in at 13828.00 and 13555.25.