E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 23, 2016 Forecast

December E-mini NASDAQ-100 Index futures are called lower based on the trade shortly before the cash market opening. At 1149 GMT, the index is trading 4876.75, down 9.50 or -0.19%. In the absence of any major economic reports overnight and early in the U.S. trading day, we have to conclude that the weakness is being triggered by profit-taking.

Later today, investors will get the opportunity to react to the latest data on U.S. Flash Manufacturing PMI for September. It is expected to show a read of 52.1 versus 52.0 in August.

Some investors may be paring risk ahead of next week’s presidential debates due to uncertainty and expectations of increased volatility.

TECHNICAL ANALYSIS                 

Unlike the other major indices, the main trend is up according to the daily swing chart. The index is in no danger of turning down, but the index begins the session in the window of time for a potentially bearish closing price reversal top. This means that investors should watch for an intraday higher-high, lower-close to signal the selling is greater than the buying at current price levels.

The main range is currently 4625.25 to 4892.25. If there is a correction then its retracement zone at 4758.75 to 4727.25 will become the primary downside target.

FORECAST

BASED ON THE CURRENT PRICE AT 4876.75, THE NEAREST UPSIDE TARGET IS A STEEP UPTRENDING ANGLE AT 4913.25.

CROSSING TO THE BULLISH SIDE OF THIS ANGLE WILL PUT THE DECEMBER E-MINI NASDAQ-100 INDEX IN AN EXTREMELY BULLISH POSITION.

THE FAILURE TO OVERCOME 4913.75 WILL INDICATE THE LACK OF BUYERS. TRADING THROUGH 4842.75 WILL INDICATE THE SELLING IS GETTING STRONGER. THIS COULD CREATE THE ENERGY NEEDED TO DRIVE THE INDEX CLOSER TO THE STEEP SUPPORT ANGLE AT 4769.25.

WATCH THE PRICE ACTION AND READ THE ORDER FLOW AT THURSDAY’S CLOSE AT 4886.25. BUYERS ARE EITHER GOING TO COME IN AND DRIVE THE MARKET OVER THIS LEVEL FOR A CHANCE AT A BREAKOUT OVER 4913.75.

OR, SELLERS ARE GOING TO GAIN CONTROL IN AN EFFORT TO WEAKEN THE INDEX AND DRIVE IT LOWER ON A SUSTAINED MOVE UNDER 4886.25.