E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Over 15674.75, but Ripe for Reversal Top

September E-mini NASDAQ-100 Index futures edged higher on Tuesday, dragged up by the NASDAQ Composite cash index which hit another record high. Traders said the price action suggested investors were trying to balance worries about the slowing pace of the economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy.

On Tuesday, September E-mini NASDAQ-100 Index futures settled at 15674.75, up 23.25 or +0.15%

The NASDAQ-100 Index was supported by Big Tech stocks that have fueled Wall Street’s gains in recent years. Apple rose 1.6% and Netflix added 2.7%, both hitting record highs.

“You could call it a gravitation toward Big Tech. As people feel a bit uncertain about how COVID will play out, you don’t have your reopening worries with those companies,” said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15708.75 will signal a resumption of the uptrend.

A move through 14710.50 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, Wednesday’s session will begin with the index inside the window of time for a closing price reversal top.

The minor trend is also up. A trade through 15551.75 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 15551.75 to 15708.75. The index is currently trading on the strong side of its pivot at 15630.25.

The second minor range is 15255.25 to 15708.75. If the minor trend turns down then look for the selling to possibly extend into its retracement zone at 15482.00 to 15428.50.

The short-term range is 14710.50 to 15708.75. Its retracement zone at 15209.50 to 15091.75 is a value zone.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 15630.25.

Bullish Scenario

A sustained move over 15630.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 15708.75. Taking out this level will signal a resumption of the uptrend. It could also trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 15630.25 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor bottom at 15551.75.

Taking out 15551.75 will shift momentum to the downside. This could then extend the selling into 15482.00 to 15428.50.