E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Sellers Targeting 14565.50 – 14501.25

September E-mini NASDAQ-100 Index futures are down sharply early Thursday. Not only are investors worried about the Federal Reserve preparing for tapering later this year, but they’re also being influenced by stock market weakness in the Asia-Pacific region.

At 08:00 GMT, September E-mini NASDAQ-100 Index futures are trading 14752.00, down 97.25 or -0.65%.

The index is following through to the downside following a steep sell-off in Wednesday’s session. Those losses came as minutes from the Federal Reserve’s July gathering showed officials made plans to pull back the pace of their monthly bond purchases likely before the end of the year.

“Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes stated.

In Asia, stocks fell in Thursday’s trade, with Chinese tech stocks slipping again as regulatory fears continue to weigh on investor sentiment. Shares of Alibaba in Hong Kong fell to record lows in Thursday afternoon trading, plunging more than 5%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since August 10. A trade through 15172.50 will signal a resumption of the uptrend, while a move through 14445.00 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 15141.75 will change the minor trend to up.

The short-term range is 14445.00 to 15172.50. The index is currently straddling its 50% level or pivot at 14808.75.

The minor range is 15172.50 to 14722.50. Its 50% level at 14947.50 is potential resistance. This level will move lower as the market moves down.

On the downside, the best targets are a pair of 50% levels at 14565.50 and 14501.25. These are the last potential support levels before the main bottom at 14445.00 so look for buyers to show up to defend the trend.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to 14808.75.

Bearish Scenario

A sustained move under 14808.75 will indicate the presence of sellers. If this move creates enough downside momentum, we could see an acceleration into 14565.50, followed closely by 14501.25. Look for buyers on a test of these levels.

Taking out 14445.00 will change the main trend to down. This could lead to more selling with 14311.75 the next potential target.

Bullish Scenario

A sustained move over 14808.75 will signal the presence of buyers. If this more attracts enough buyers, we could see a rally into the pivot at 14947.50. Overtaking this level will indicate the buying is getting stronger.