E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Traders Watching 7510.50 into Close

September E-mini NASDAQ-100 Index futures are trading higher as we approach the cash market close. The price action was impressive on Wednesday as aggressive buyers came in shortly after the cash market opening following a steep sell-off during the pre-market session threatened to wipe out all of yesterday’s gains. Today’s price action also confirmed yesterday’s closing price reversal bottom.

At 20:02 GMT, September E-mini NASDAQ-100 Index futures are trading 7562.75, up 47.25 or +0.64%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside on Tuesday with the formation of a closing price reversal bottom and its subsequent confirmation earlier today.

A trade through 7224.50 will negate the closing price reversal top and signal a resumption of the downtrend. The next major downside target is the 6969.00 main bottom. Despite the strong recovery, the index isn’t close to changing the trend to up, but there is room to complete a normal retracement of the current sell-off.

The main range is 6969.00 to 8051.75. Its retracement zone at 7510.50 to 7382.50 is controlling the direction of the index. Trading on the strong side of this zone is helping to generate a slight upside bias.

The short-term range is 8051.75 to 7224.50. Its retracement zone at 7638.25 to 7735.75 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this zone.

The key level to watch into the futures close at 21.00 GMT is the main 50% level at 7510.50. Holding above this level into the close could give the market a boost early Thursday. A break back under 7510.50 will indicate that sellers came in on the close. This could lead to early weakness on Thursday.