E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Hitting Record Highs Ahead of Friday’s NFP Report

September E-mini NASDAQ-100 Index futures are trading higher after hitting a record high on Thursday. The rally was fueled amid a drop in unemployment claims and a widening of the trade deficit – both positive economic signs in the face of rising COVID-19 cases. Both also likely brought the Federal Reserve closer to ending its stimulus.

At 19:34 GMT, September E-mini NASDAQ-100 Index futures are trading 15142.25, up 68.75 or +0.46%.

In economic news, the number of Americans filing new claims for unemployment benefits declined further last week, while layoffs dropped in July to their lowest level in just more than 21 years. Additionally, the U.S. trade deficit surged to a record high in June as businesses boosted imports to rebuild inventories.

In stock related news, despite the rally, shares of Roku dropped more than 4% after the company issued quarterly results. Etsy fell 6% after the company gave guidance for the current quarter that indicated the pandemic-fueled commerce boom may be coming to an end.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 15166.50 will signal a late session resumption of the uptrend. A move through 14445.00 will change the main trend to down.

The minor trend is also up. A trade through 14774.25 will change the minor trend to down. This will shift the momentum to down.

The minor range is 14774.25 to 15166.25. The index is currently trading on the strong side of its pivot at 14970.25, making it new support.

Additional support is the 50% level at 14805.75.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index into the close will be determined by trader reaction to 15073.50.

Bullish Scenario

A sustained move over 15073.50 will indicate the presence of buyers.

Bullish Scenario

A late session break under 15073 will signal the presence of sellers. A close under this level will form a potentially bearish closing price reversal top, but more than likely, it will indicate profit-taking and position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report.