E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 11383.25, Weakens Under 11127.75

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening on Wednesday, as the rout in technology shares came to an abrupt halt during the pre-market session and investors shrugged off news that AstraZeneca had paused global trials of its experimental coronavirus vaccine.

Shortly before the opening, Tesla was trading about 4.4% higher after shedding about $80 billion of its market capitalization in the previous session following a surprise exclusion from the S&P 500.

In other stock related news, Apple and Microsoft, which have borne the brunt of the tech rout, led gains among the NASDAQ components.

At 14:35 GMT, September E-mini NASDAQ-100 Index futures are at 11275.75, up 215.25 or +1.95%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 10845.50 will change the main trend to down. Today’s intraday low at 10935.25 suggests investors came in to defend the main bottom.

The first short-term range is 9368.25 to 12465.25. Its retracement zone at 10916.75 to 10551.25 is potential support. Today’s low at 10935.25 stopped just short of this area.

The second short-term range is 10301.00 to 12465.25. The index is currently testing its retracement zone at 11127.75 to 11383.25.

The new minor range is 12465.25 to 10935.25. If the rally continues then its retracement zone at 11700.25 to 11880.75 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index the rest of the session on Wednesday is likely to be determined by trader reaction to the Fibonacci level at 11127.75.

Bullish Scenario

A sustained move over 11127.75 will indicate the presence of buyers. The first upside target is the 50% level at 11383.25. This is a potential trigger point for an acceleration into 11700.25 to 11880.75.

Bearish Scenario

A sustained move under 11127.75 will indicate the buying is getting weaker or the selling is getting stronger. This could trigger a retest of the intraday low at 10935.25, followed by a 50% level at 10916.75 and a main bottom at 10845.50.

The main bottom at 10845.50 is a potential trigger point for an acceleration into the Fibonacci level at 10551.25.

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