E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Earnings Drive Tech Shares to 3-Month High

September E-mini NASDAQ-100 Index futures are trading sharply higher late in the session on Wednesday. The catalysts behind the rally are strong earnings reports and better-than-expected U.S. economic data. Investors were also encouraged to buy as fears of a recession were dampened by the upbeat economic news.

At 20:22 GMT, September E-mini NASDAQ-100 Index futures are at 13247.50, up 323.00 or +2.50%. The Invesco QQQ Trust ETF (QQQ) settled at $322.80, up $8.47 or +2.69%.

Investors also shrugged off the hawkish tone of several Fed officials who sounded the alarm over the need for higher interest rates in order to fight inflation. Traders also downplayed concerns over heightened tensions between China and the United States.

In economic news, the Institute for Supply Management said its non-manufacturing PMI rebounded last month from June. The increase ended three straight monthly declines. It also showed supply bottlenecks and price pressures eased, and backed up the view that the economy is not in a recession.

NASDAQ stocks also performed well with shares of Gilead Sciences jumping 6.6%. Electronic Arts rose 4% and Moderna jumped 16.7% after the company’s earnings easing topped Wall Street estimates.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 13310.25 will signal a resumption of the uptrend. A move through 12072.00 will change the main trend to down.

The minor trend is up. A trade through 12814.75 will change the minor trend to down. This will shift momentum to the downside.

The intermediate range is 14327.50 to 11068.50. The market is currently trading on the strong side of its retracement zone at 13082.50 to 12698.00, making it support.

Daily Swing Chart Technical Forecast

Trader reaction to the intermediate Fibonacci level at 13082.50 is likely to determine the direction of the September E-mini NASDAQ-100 Index into the close on Wednesday.

Bullish Scenario

A sustained move over 13082.50 will indicate the buying is getting stronger. If this continues to generate enough upside momentum then look for a surge into the May 4 main top at 13582.75.

Bearish Scenario

A sustained move under 13082.50 will signal the presence of sellers. The next downside target is a minor pivot at 13062.50. If this fails, we could see a retest of the minor bottom at 12814.75.