E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 5, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading flat shortly before the cash market opening. Earlier in the session, the index was under pressure due to concerns over North Korea, but there wasn’t much of a follow-through move. This led to an intraday short-covering rally.

Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be shifting to the downside with the formation of the closing price reversal top at 6019.75 on Friday.

A trade through 6019.75 will negate the chart pattern and signal a resumption of the uptrend.

The short-term range is 5777.25 to 6019.75. If the selling pressure resumes then its retracement zone at 5898.50 to 5869.75 will become the primary downside target.

Forecast

Based on the current price at 5975.00 and the earlier price action, the nearest uptrending support angle is 5937.25. Since the main trend is up, look for a technical bounce on the first test of this uptrending angle.

We could see an acceleration to the downside if 5937.25 fails as support. The daily chart is wide open down to 5898.50. This is followed by 5869.75 and 5857.25.

The angle at 5857.25 is also the trigger point for a steep break into 2441.00.

There is no nearby resistance, but buyers are going to have to come in strong to create the upside momentum needed to test 6019.75.

The chart pattern suggests investors are going to have to buy strength to extend the rally, or wait for pullback into support areas.