E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Continuing the Strong Start to September
September E-mini NASDAQ-100 Index futures nudged slightly higher early Wednesday following a strong start to September in the previous session. The technology-driven index is being supported by high-fliers such as Apple, Amazon and Microsoft, which posted slight gains in extended trading as well.
The major U.S. stock indexes all rose during Tuesday’s regular session, with the Dow Jones Industrial Average and the NASDAQ Composite closing at record highs. The S&P 500 rose 0.75%, which was its best first trading day of September since 2010, according to Bespoke Investment Group.
At 04:03 GMT, September E-mini NASDAQ-100 Index futures are trading 12382.00, up 69.50 or +0.56%.
Investors will be watching the ADP payroll data on Wednesday morning, one of the last reads on the labor market before the official August jobs report is released on Friday.
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 yesterday’s high at 12328.75.
The main trend will change to down on a trade through the nearest main bottom at 10845.50. This is highly unlikely but the prolonged move up in terms of price and time has put the index inside the window of time for a closing price reversal top. This chart pattern won’t change the trend to down, but it could alleviate some of the upside pressure in this nearly “overcooked” market.
The minor trend is also up. A trade through 11221.50 will change the minor trend to down. This move will shift momentum to the downside.
The new minor range is 11221.50 to 12417.25. Its 50% level at 11819.25 is the first potential downside target.
The new main range is 10845.50 to 12417.25. Its 50% level at 11631.25 is the second potential downside target.
Since the high of this swing move hasn’t been established yet, the 50% levels will move higher as the index moves up.
Daily Swing Chart Technical Forecast
Based on the early price action, the key level to watch will be Tuesday’s close at 12312.50.
A sustained move over 12312.50 will indicate the presence of buyers. A move through the intraday high at 12417.25 will indicate the buying is getting stronger.
A sustained move under 12312.50 will signal the presence of sellers. The first downside target is yesterday’s low at 12093.00. Taking out this low will break the minor pattern and signal that the selling is getting stronger.
A close under 12093.00 will form a closing price reversal top. If confirmed, this could lead to the start of a 2 to 3 day correction.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
AT&T Likely to Sell its Digital Advertising Unit Xandr; Target Price $25 in Worst-Case
EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – September 2nd, 2020
European Equities: Economic Data from Germany and the Eurozone in Focus
US Stocks Continue to March Higher Despite Rising Implied Volatility
