E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 6, 2017 Forecast

September E-mini NASDAQ-100 Index futures are expected to open steady according the pre-market price action. Earlier today, the index straddled yesterday’s close while remaining inside yesterday’s range. This indicates investor indecision and impending volatility.

I can understand the uncertainty. This is the clash between long-term investors and short-term traders. Long-term investors like the long side of the index because the economy is growing, inflation is low as well as interest rates. Short-term traders are reacting to geopolitical events.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 6019.75.

A trade through 6019.75 will negate the chart pattern and signal a resumption of the uptrend. A trade through 5777.25 will change the main trend to down.

The short-term range is 5777.25 to 6019.75. Its retracement zone at 5898.50 to 5869.75 is providing support. This zone stopped the selling on Tuesday. Since the main trend is up, new buyers may have also come in to trigger a rally.

Forecast

Based on the current price at 5954.00 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the steep uptrending angle at 5937.25.

A sustained move over 5937.25 will indicate the presence of buyers. The daily chart is open to the upside with 6019.75 the next likely target.

A sustained move under 5937.25 will signal the presence of sellers. This could trigger a move into the short-term 50% level at 5898.50. This is followed by the short-term Fibonacci level at 5869.75, followed by the uptrending angle at 5857.25.

The downside momentum will continue to strengthen if the angle at 5857.25 fails as support. This could lead to a test of the next angle at 5817.25.

Watch the price action and read the order flow at 5937.25 all session. Trader reaction to this angle will tell us if the buyers are taking control, or if the sellers are still in control.