E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Over 10679.50, Weak Under 10529.75

September E-mini NASDAQ-100 Index futures are trading higher at the mid-session after shrugging off bearish economic news and worries ahead of the release of quarterly earnings reports by tech heavyweights Apple Inc, Amazon.com Inc, Alphabet Inc and Facebook. Shares of the companies have a combined market value of about $5 trillion or almost a fifth of the whole S&P 500 Index.

At 16:33 GMT, September E-mini NASDAQ-100 Index futures are trading 10687.50, up 13.25 or +0.12%. This is up from an intraday low of 10707.00.

Earlier in the session, the index fell after the Commerce Department reported that Gross Domestic Product collapsed at a 32.9% annualized rate last quarter. Jobless claims numbers also showed another rise in the latest week and coronavirus cases continued to surge.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 10301.00 will signal a resumption of the downtrend. The main trend will change to up on a trade through 10758.50.

The minor range is 10301.00 to 10758.50. Its 50% level at 10529.75 provided support earlier in the session.

The short-term range is 11058.00 to 10301.00. Its retracement zone at 10679.50 to 10769.00 is potential resistance. It is currently being tested.

The main range is 9728.75 to 11058.50. Its retracement zone at 10393.50 to 10236.75 is key support. It stopped the selling last week at 10301.00.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 10687.50, the direction of the September E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the 50% level at 10679.50.

Bullish Scenario

A sustained move over 10679.50 will indicate the presence of buyers. This could trigger a rally into the main top at 10758.50, followed closely by the Fibonacci level at 10769.00. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

Remember with the main trend down, traders are likely to sell rallies. A sustained move under 10679.50 will signal the presence of sellers. This could lead to a retest of the 50% level at 10529.75.

If 10529.75 fails as support then look for the selling to possibly extend into a series of levels at 10393.50, 10301.00 and 10238.75.

Taking out 10238.75 could trigger an acceleration to the downside with 9728.75 the next major downside target zone.

For a look at all of today’s economic events, check out our economic calendar.