E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Sellers Eyeing 10468.25 as Next Objective

September E-mini NASDAQ-100 Index futures are plunging late in the session on Thursday on the fear that aggressive rate hikes by global central banks will curtail economic growth enough to trigger a recession.

This follows the aggressive rate hike by the U.S. Federal Reserve on Wednesday and today’s surprise rate hike by the Swiss National Bank (SNB), its first in 14 years.

The Bank of England (BOE) also hiked rates on Thursday. Investors are now bracing for the Bank of Japan’s (BOJ) interest rate decision early Friday that could show a hawkish shift by policymakers.

At 07:53 GMT, September E-mini NASDAQ-100 Index futures are trading 11129.25, down 499.75 or -4.30%. The Invesco QQQ Trust ETF (QQQ) is at $270.45, down $12.35 or -4.37%.

“This is a belief that the Fed is going to force a recession and they are just going to beat this market down until even high net worth investors cry uncle,” said Jack Ablin, chief investment officer at Cresset Capital Management in Chicago.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the November 2, 2020 main bottom at 10944.00 will reaffirm the uptrend. A trade through 12973.75 will change the main trend to up.

The minor trend is also down. A trade through 11794.25 will change the minor trend to up. This will also shift momentum to the upside.

On the upside, the nearest resistance is the long-term 50% level at 11671.25. On the downside, the nearest potential support is the Fibonacci level at 10468.25.

Daily Swing Chart Technical Forecast

Trader reaction to 11421.50 is likely to determine the direction of the September E-mini NASDAQ-100 Index into the close on Thursday.

Bearish Scenario

A sustained move under 11421.50 will indicate the presence of sellers. The first downside target is 10944.00. If this fails, then look for an acceleration into the long-term Fibonacci level at 10468.25.

Bullish Scenario

A sustained move over 11421.50 will signal the return of buyers. This could trigger a late session rally into the long-term 50% level at 11671.25, followed by the minor top at 11794.25. Taking out this level will shift momentum to the upside with 12021.25 to 12246.00 the next target zone.