E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Close Puts 12698.00 on Radar

September E-mini NASDAQ-100 Index futures closed higher on Tuesday as a rally in the banking sector helped drive positive sentiment across all sectors including technology. Investors seemed to shrug off worries about red-hot inflation as well as a tightening Federal Reserve and its potential impact on corporate earnings.

On Tuesday, the September E-mini NASDAQ-100 Index settled at 12274.00, up 367 or -3.08%. The Invesco QQQ Trust ETF (QQQ) finished at $298.30, up $8.90 or +3.075%.

In the cash market, the tech-heavy NASDAQ Composite added 3.1%, marking the biggest one-day percentage gain since June 24.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. It turned up early Tuesday when buyers took out 12211.00. It was reaffirmed when the move extended through 12262.00.

A trade through 12328.50 will reaffirm the uptrend early Wednesday. A trade through 11479.25 will change the main trend to down.

The minor range is 11479.25 to 12328.50. Its pivot at 11903.75 is the nearest support. The main support is the long-term 50% level at 10944.00.

The intermediate range is 14327.50 to 11068.50. Its retracement zone at 12698.00 to 13082.50 is the nearest resistance and upside target.

Short-Term Outlook

Trader reaction to 12274.00 is likely to determine the direction of the September E-mini NASDAQ-100 Index early Wednesday.

Bullish Scenario

A sustained move over 12274.00 will indicate the presence of buyers. Taking out 12328.50 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for a surge into the intermediate 50% level at 12698.00.

Sellers could come in on the first test of 12698.00, but overcoming this level could trigger an acceleration to the upside with the next target the main top at 12973.75, followed by the intermediate Fibonacci level at 13082.50.

Bearish Scenario

A sustained move under 12274.00 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor pivot at 11903.75. Since the main trend is up, buyers are likely to come in on a test of this level.