E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 15056.75 Pivot Sets Early Tone

September E-mini NASDAQ-100 Index futures finished higher on Thursday after recovering from a test of its lowest level since August 3. Mega-cap technology stocks carried the market as investors warmed to jobs data showing a steady U.S. economic recovery. Apple Inc, Microsoft Corp, Amazon.com, Google-parent Alphabet Inc and Facebook Inc led shares on the tech-heavy NASDAQ.

On Thursday, September E-mini NASDAQ-100 Index futures settled at 15078.50, up 71.25 or +0.47%.

Tesla Inc, Nvidia Corp and Moderna Inc also rallied on a day in which more stocks declined than advanced.

In economic news, the number of Americans filing claims for unemployment benefits fell again last week as the economic recovery from the COVID-19 pandemic continued. Additionally, data on Thursday showed U.S. producer prices posted their largest annual increase in more than a decade last month, raising inflation concerns, after Wednesday’s U.S. consumer price index reading indicated the pace appeared to be slowing.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 15172.50 will signal a resumption of the uptrend. A move through 14445.00 will change the main trend to down.

The minor trend is down. This is controlling the momentum. On Thursday, the index posted a minor closing price reversal bottom. Confirmation of this chart pattern could shift momentum to the upside.

The minor range is 15172.50 to 14941.25. On Thursday, the index closed on the strong side of its pivot at 15056.75.

The second minor range is 14774.25 to 15172.50. Its pivot at 14973.25 is additional support. A third potential support level is 14808.75.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index early Friday is likely to be determined by trader reaction to 15056.75.

Bullish Scenario

A sustained move over 15056.75 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a possible surge into the minor top at 15157.25, followed by the main top at 15172.50.

Bearish Scenario

A sustained move under 15056.75 will signal the presence of sellers. The first downside target is the pivot at 14973.25, followed by the reversal bottom at 14941.25. This level is a potential trigger point for an acceleration to the downside with the next target a pivot at 14808.75, followed by a minor bottom at 14774.25.