E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Bullish Over 6007.00, Bearish Under 5880.25

September E-mini NASDAQ-100 Index futures closed lower last week while posting an inside range. The chart pattern indicates investor indecision and impending volatility. Volume and volatility was light last week suggesting that perhaps the major players still haven’t come back from summer vacation.

The price action was controlled by concerns about the strength of the economy given the impact of Hurricane Harvey on the Houston, Texas area and the potential disaster facing Florida because of Hurricane Irma, which is expected to make landfall this week-end.

Investors also expressed concerns over the lack of progress on tax reform. Worries over the escalating tensions in the Korea Peninsula also helped keep a lid on the market.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 6019.75 will signal a resumption of the uptrend. Taking out the swing bottom at 5752.25 will change the main trend to down. This is followed by another main bottom at 5560.25. This bottom is also the trigger point for an acceleration to the downside.

The main range is 4599.00 to 6019.75. If there is a change in trend and the selling does accelerate to the downside then its retracement zone at 5309.25 to 5141.75 will become the primary downside target.

Weekly Forecast

Based on last week’s close at 5916.25, look for a strong market to develop on a sustained move over an uptrending angle at 6007.00 and a weak trade to develop on a sustained move under 5880.25.

If the buying is strong enough to overcome 6007.00 then the next target becomes the contract high at 6019.75.

If the selling is strong enough to drive the market under 5880.25 then look for the weakness to extend into the main bottom at 5752.25. This will change the main trend to down with an uptrending angle at 5720.25 the next target.

If 5720.25 fails to hold as support then the selling could extend into 5560.25. This main bottom is a potential trigger point for a steep break with 5309.25 the first target, followed by an uptrending angle at 5303.00 and a Fibonacci level at 5141.75.