E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 9845.25, Weakens Under 9754.00

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening on Tuesday, but are backing off their highs after Fed Chairman Jerome Powell warned that “significant uncertainty remains about the timing and strength of the recovery.”

The comment echoed the tone he expressed last week following the Federal Open Market Committee meeting on Wednesday. The U.S. stock market plummeted last Thursday following Powell’s bleak forecast.

At 14:53 GMT, September E-mini NASDAQ-100 Index futures are trading 9898.75, up 110.25 or +1.13%.

Earlier in the session, the index was driven higher by a record rise in May retail sales, revived hopes of a swift post-pandemic economic rebound and data showing reduced COVID-19 death rates in a trial of a generic steroid drug.

In the technology sector, Apple Inc was up 1.40%. Microsoft Corporation was trading $193.20, up 2.25% and Amazon.com was at $2592.56, up 0.77%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 10140.00 will signal a resumption of the uptrend. A move through 8841.00 will change the main trend to down.

The minor trend is down. A trade through 9368.25 will reaffirm the minor trend.

The minor range is 10140.00 to 9368.25. Its retracement zone at 9754.00 to 9845.25 is controlling the direction of the index on Tuesday.

The short-term range is 8841.00 to 10140.00. Its retracement zone at 9490.50 to 9337.25 is potential support.

The second short-term range is 8547.00 to 10140.00. Its retracement zone at 9343.50 to 9153.50 is another potential support area.

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 Tuesday will likely be determined by trader reaction to 9845.25 to 9754.00.

Bullish Scenario

A sustained move over 9845.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible re-test of the intraday high at 10001.75, followed by the all-time high at 10140.00.

Bearish Scenario

A sustained move under 9754.00 will signal the presence of sellers. This move could trigger an acceleration to the downside with 9490.50 the next likely downside target. This is followed by 9368.25 and 9337.25.

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