E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 14081.75, Weakens Under 14017.50

September E-mini NASDAQ-100 Index futures are trading slightly lower during Tuesday’s pre-market session after posting a relatively modest gain the previous session. Trading was a little subdued on Monday with most of the money flowing into the value-based Dow Jones Industrial Average, which posted its best day since March.

At 07:06 GMT, September E-mini NASDAQ-100 Index futures are trading 14116.00, down 14.00 or -0.10%.

Later today at 18:00 GMT, Federal Reserve Chairman Jerome Powell will testify before the House of Representatives on the central bank’s response to the pandemic. His remarks, which were released ahead of the hearing Monday evening, are likely to support the notion that the Fed is ready to soon start discussing removing some of its unprecedented stimulus measures enacted during the pandemic.

Daily Swing Chart 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 on June 18.

A trade through 14204.75 will negate the closing price reversal top and signal the resumption of the uptrend. A trade through 13451.25 will change the main trend to down.

The minor trend is also up. A trade through 13958.50 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 13830.25 to 14204.75. The index is currently trading on the strong side of its pivot at 14017.50, making it support.

The short-term range is 13451.25 to 14204.75. If the minor trend changes to down then its pivot at 13828.00 will become the next downside target.

The main range is 12906.00 to 14204.75. Its 50% level at 13555.25 represents value. A test of this level could bring in new buyers.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to 14081.50.

Bullish Scenario

A sustained move over 14081.75 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to possibly extend into 14204.75. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 14081.50 will signal the presence of sellers. This could lead to a quick test of 14017.50, followed by 13958.50.

Taking out 13958.50 will indicate the selling pressure is getting stronger. This could extend the move into 13830.25 to 13828.00.