Yahoo Finanza E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 14869.25 at Close to Sustain Momentum
September E-mini NASDAQ-100 Index futures are trading higher after the cash market close on Tuesday. The tech-driven stock index hit another record high, helped by a rise in mega-cap stocks and a positive start to the earnings season.
At 20:31 GMT, September E-mini NASDAQ-100 Index futures are trading 14880.75, up 11.50 or +0.08%.
Tech-related growth stocks also got a boost from a decline in the benchmark 10-year Treasury yield after data showed U.S. consumer prices rose by the most in 13 years last month, while the so-called core CPI surged 4.5% on a year-on-year basis, the largest rise since November 1991, after jumping 3.8% in May.
Leading the index higher were shares of Autodesk Inc, which rose 1.54% and Microsoft, which rose 1.32%. Apple Inc added 0.79%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at 14994.75 will signal a resumption of the uptrend. The main trend changes to down on a move through 12906.00. This is highly unlikely, but due to the prolonged move up in terms of price and time, the index is vulnerable to a potentially bearish closing price reversal top.
The minor trend is also up. A trade through 14540.50 will change the minor trend to down. This will also shift momentum to the downside.
The first minor range is 14471.00 to 14994.75. Its pivot at 14732.75 is the first downside target. This is followed by two potential support levels at 14476.50 and 14412.50.
Short-Term Outlook
The direction of the September E-mini NASDAQ-100 Index into the close on Tuesday will likely be determined by trader reaction to 14869.25.
Bullish Scenario
A sustained move over 14869.25 will indicate the presence of buyers. This will set up the market for an early test of 14994.75 on Wednesday. Taking out this high could trigger an acceleration to the upside since there is no resistance.
Bearish Scenario
A sustained move under 14869.25 will signal the presence of sellers. This could trigger an intraday break into 14732.75.
Side Notes
A close under 14869.25 will form a potentially bearish closing price reversal top. If confirmed on Wednesday, this could trigger the start of a minimum 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
