E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 1, 2016 Forecast

September E-mini NASDAQ-100 Index futures are called higher based on the pre-market trade. The index is following the lead of the Asian and European markets which posted gains for their sessions. Better-than-expected manufacturing data from China is also helping to increase demand for higher risk assets.

Light volume is still an issue with many major players on the sidelines ahead of Friday’s U.S. Non-Farm Payrolls report so investors have to be careful about buying strength and selling weakness today.

The main trend is down according to the daily swing chart. However, the momentum appears to have shifted to the upside despite the light volume, or maybe because of it. A trade through 4836.75 will turn the main trend to up. A move through 4751.50 will signal a resumption of the downtrend.

The main range is 4550.25 to 4836.75. Its retracement zone at 4693.50 to 4659.75 is the primary downside target.

The short-term range is 4836.75 to 4751.50. Its 50% level or pivot at 4794.25 is controlling the short-term direction of the market.

Based on the early price action, the direction of the market today is likely to be determined by trader reaction to the pivot at 4794.25.

A sustained move under 4794.25 will signal the presence of sellers. This could lead to a test of the downtrending angle at 4780.75. Crossing to the weak side of the angle at 4780.75 will put the index in a bearish position with 4751.50 the next likely target.

A sustained move over 4794.25 will indicate the presence of buyers. This could create enough upside momentum to challenge the next downtrending angle at 4808.75. This is followed by a potential resistance cluster at 4822.25 to 4822.75. Taking out this price cluster will put the index in a bullish position.

Watch the price action and read the order flow at 4794.25 today. Trader reaction to this pivot will tell us if the buyers have returned.