E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 14582.75 to Sustain Upside Momentum

September E-mini NASDAQ-100 Index futures are trading lower shortly after the mid-session on Wednesday after touching a record high earlier in the session. Nonetheless, the tech-driven index is in a position to post solid monthly and quarterly gains.

The price action suggests investors have shrugged off high inflation readings and have kept buying stocks on the hopes an economic comeback from the pandemic would continue and the Federal Reserve would mostly maintain its easy policies.

At 17:32 GMT, September E-mini NASDAQ-100 Index futures are at 14542.00, down 21.00 or -0.14%.

Earlier in the session, payroll firm ADP reported that private payrolls rose 692,000 in June, beating expectations. However, the firm’s May number was revised down. Pending home sales jumped in May to their highest level since 2005. Chicago PMI came in lower than expected for June but still showed expansion.

Investors showed little reaction to the reports, instead throwing their focus on Friday’s U.S. Non-Farm Payrolls report. Economists expect 683,000 jobs were added in June, according to a Dow Jones survey.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 14598.50 will signal a resumption of the uptrend.

A trade through 13451.25 will change the main trend to down. This is highly unlikely, but the index is setting up for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 13958.50 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 13958.50 to 14598.50. Its 50% level at 14278.50 is the nearest support. The second minor range is 13830.25 to 14598.50. Its 50% level at 14214.25 is additional support.

Daily Swing Chart Technical Forecast

The direction of the September E-mini NASDAQ-100 Index into the close on Wednesday is likely to be determined by trader reaction to 14582.75.

Bullish Scenario

A sustained move over 14582.75 will indicate the presence of buyers. Taking out 14598.50 will indicate the buying is getting stronger. There is no resistance.

Bearish Scenario

A sustained move under 14582.75 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first pivot at 14278.50.

Side Notes

A close under 14582.75 will form a closing price reversal top. This chart pattern won’t change the trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.