E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 21, 2017 Forecast

December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. Yesterday’s price action was highlighted by volatility. The movement was strong enough to change the main trend to down and confirm a double-top chart pattern.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Wednesday on a trade through 5948.00. The double-top is 6018.25 to 6025.75.

A trade through 6018.25 will change the main trend to up. A move through 5930.50 will signal a resumption of the downtrend.

The main range is 5784.50 to 6025.75. Its retracement zone at 5905.00 to 5876.50 is the primary downside target.

Daily Forecast

Based on the current price at 5975.25 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 5973.75.

A sustained move over 5973.75 will indicate the presence of buyers. This could trigger a rally into the next downtrending angle at 5999.75. This is the last potential resistance angle before the main tops at 6018.25 and 6025.75.

Taking out 6025.75 could trigger a rally into the steep uptrending angle at 6040.50. Overcoming this angle will put the index in a bullish position.

A sustained move under 5973.75 will be a sign of increasing selling pressure. This could lead to an acceleration to the downside with the next major targets coming in at 5921.75, 5912.50 and 5905.00.

Basically, holding above 5973.75 will indicate that aggressive counter-trend buyers are holding up the market while a sustained move under this level will indicate the selling pressure is getting stronger.