E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 8, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly lower and inside yesterday’s range shortly before the cash market opening. This typically indicates investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been drifting sideways to lower since the formation of the closing price reversal top at 6019.75 on September 1.

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. Its retracement zone at 5898.50 to 5869.75 is the primary downside target. This zone provided support on Tuesday, September 5 when the selling stopped at 5889.50.

If 5869.75 fails as support then we could see an eventual test of the next main bottom at 5777.25. A trade through this level will change the main trend to down.

Forecast

Based on the current price at 5955.75, buyers can either go after the uptrending angle at 6001.25 or the uptrending angle at 5889.25. It all depends if they are buying strength or waiting for value.

Overtaking 6001.25 will indicate investors are buying strength. A sustained move over this angle will put the index in a strong position with 6019.75 the next major upside target.

The uptrending angle at 5889.25 also falls inside the retracement zone at 5898.50 to 5869.75, making is a solid support angle. Since the main trend is up, buyers are likely to show up on a test of this area.

If 5869.75 fails as support then look for a possible break into the next uptrending angle at 5833.25.

The direction of the market today will be determined by whether investors want to play upside momentum, or for a pullback into support.