E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 14117.25 Sets the Tone

September E-mini NASDAQ-100 Index futures are trading higher during the pre-market session on Tuesday after rising for the sixth time in the past seven sessions on Monday. The index was supported by gains in shares of Tesla Inc, Apple Inc and Amazon.com Inc.

At 03:40 GMT, September E-mini NASDAQ-100 Index futures are at 14137.50, up 20.25 or +0.14%.

High-growth tech-related stocks, which were at the heart of a sell-off driven by fears of rising rates, have regained their footing this month at the expense of economy-linked industrials, financials and materials stocks.

Investors are seeking new cues from the Federal Reserve this week on its inflation outlook, after recent data indicated the U.S. economy is regaining momentum but not overheating. This has eased investor worries about inflation, helping to boost demand for high growth technology stocks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Monday’s high. A trade through 13451.25 will change the main trend to down.

The minor trend is also up. A move through 13716.25 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 13716.25 to 14155.25. Its 50% level at 13935.75 is potential support. This level will move up as the index moves higher.

The second minor range is 13451.25 to 14155.25. Its 50% level at 13803.25 is another potential support level.

The short-term range is 12906.00 to 14155.25. A third potential downside target is its 50% level at 13530.50.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to 14117.25.

Bullish Scenario

A sustained move over 14117.25 will indicate the presence of buyers. Taking out the intraday high at 14155.25 will indicate the buying is getting stronger. This could trigger an acceleration to the upside if the buying volume is strong enough.

Bearish Scenario

A sustained move under 14117.25 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first pivot at 13935.75. Since the main trend is up, buyers could show up on the first test of this level.

If 13935.75 fails as support then look for the selling to possibly extend into the next pivot at 13803.25.