E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 11127.75, Strengthens Over 11383.25

September E-mini NASDAQ-100 Index futures are trading more than 2% lower at the mid-session but up from its earlier low as investors sold off shares of Tesla, fueling copycat selling in other major tech stocks. Shares of Facebook Inc, Amazon.com Inc, Apple Inc, Netflix Inc and Google-parent Alphabet Inc – commonly known as the “FAANG” group of stocks – fell between 1.9% and 4.8%.

At 16:22 GMT, September E-mini NASDAQ-100 Index futures are trading 11238.50, down 310.25, down 2.69%.

Tesla Inc plunged 18.3% and was set for its worst day in nearly six months after the electric-car maker was excluded from a group of companies being added to the S&P 500.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A move through 10845.50 will change the main trend to down. A move through 12465.25 will signal a resumption of the uptrend.

The minor trend is down. It changed to down on a trade through the minor bottom at 11221.50. This move shifted momentum to the downside.

The first minor range is 10845.50 to 12465.25. Its 50% level at 11655.50 is resistance.

The second minor range is 10301.00 to 12465.25. Its retracement zone at 11383.25 to 11127.75 is currently being tested for a third session.

The short-term range is 9368.25 to 12465.25. Its retracement zone at 10916.75 to 10551.25 is another potential support area.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the Fibonacci level at 11127.75.

Bullish Scenario

A sustained move over 11127.75 will indicate the presence of buyers. The first upside target is a 50% level at 11383.25. Overtaking this level could lead to a rally into another 50% level at 11655.50. More importantly, in order to hit this level, the index will have had to turn higher for the session.

Bearish Scenario

A sustained move under 11127.75 will signal the presence of sellers. This could trigger a break into the short-term 50% level at 10916.75, followed closely by the main bottom at 10845.50.

A break through 10845.50 will change the main trend to down. This could trigger an acceleration to the downside with the short-term Fibonacci level at 10551.25 the next major downside target.