E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Direction Determined by Reaction to 5975.00

Despite geopolitical concerns last week and at the start of this week, September E-mini NASDAQ-100 Index futures remain in a position to post new all-time highs.

The index seems to have overcome the sideways-to-lower trading action that had been taking place since June. This could be because investors have finally become convinced that the Fed won’t be raising interest rates until at least mid-2018.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. Last week’s trade through 5995.75 signaled a resumption of the uptrend. The move also negated the closing price reversal top that had pressured prices for four weeks.

The new main bottom is 5752.25. A trade through this price will change the main trend to down. This could trigger a further break into the next main bottom at 5560.25.

Forecast

Based on last week’s close at 5988.25, the direction of the index this week is likely to be determined by trader reaction to the long-term uptrending angle at 5975.00.

A sustained move over 5975.00 will signal the presence of buyers. This could trigger a rally into last week’s high at 6019.75. Since this is the all-time high, taking it out should trigger an acceleration to the upside.

A sustained move under 5975.00 will indicate the presence of sellers. This could trigger a break into the next support angle at 5848.25. If this angle fails then look for the selling to extend into 5752.25 then 5704.25.

Bullish stock traders are responding to consistent economic growth, low inflation and low interest rates. These are the long-term fundamentals. Over the short-term, investors have to be ready of anything from North Korea.