E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trade Through 15517.75 Confirms Reversal Top

September E-mini NASDAQ-100 Index futures posted a potentially bearish closing price reversal top on Tuesday as investors took profits following another record high.

Technology stocks have garnered interest from investors in recent days, given the benefits which lower interest rates have on their future earnings, although the sector’s index was among the worst performers on Tuesday.

On Tuesday, September E-mini NASDAQ-100 Index futures settled at 15582.50, down 15.00 or -0.10%.

Shares of Apple fell 0.8% after hitting a lifetime high in the previous session, while Zoom Video Communications Inc tumbled 16.7% as it signaled a faster-than-expected easing in demand for its video-conferencing service after a pandemic-driven boom.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15677.25 will negate Tuesday’s closing price reversal top and signal a resumption of the uptrend.

A trade through 15517.75 will confirm the closing price reversal top. This won’t change the trend, but it will shift momentum to the downside. It could also signal the start of a 2 to 3 day correction. The main trend changes to down on a move through 14710.50.

The minor trend is also up. A trade through 15255.25 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 15255.25 to 15677.25. Its retracement zone at 15466.25 to 15416.50 is the next downside target zone.

The short-term range is 14710.50 to 15677.25. If the minor trend changes to down then look for the selling to extend into its retracement zone at 15193.75 to 15079.75.

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 15597.50.

Bullish Scenario

A sustained move over 15597.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 15677.25. Taking out this level will negate the closing price reversal top and could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 15597.50 will signal the presence of sellers. The first downside target is 15517.75. Taking out this level will confirm the closing price reversal top. This could trigger a further break into a minor retracement zone at 15466.25 to 15416.50.