Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Struggling During Rotation into Cyclical Stocks
September E-mini NASDAQ-100 Index futures are trading slightly lower at the cash market opening on Wednesday after clawing back more than half of its earlier loss. Investors were shook up during the pre-market session on renewed U.S.-China tensions after the U.S. State Department abruptly ordered China to close its consulate in Houston. However, the market mounted a turnaround after a coronavirus vaccine deal between the U.S. government and Pfizer and BioNTech was announced.
At 13:30 GMT, September E-mini NASDAQ-100 Index futures are trading 10845.00, down 6.00 or -0.06%.
Traders are also bracing for the latest earnings reports from Microsoft and Tesla, which are set for release after the bell.
Microsoft has been one of the market stalwarts this year during the pandemic, surging more than 30% in that time period. Wall Street is also awaiting Tesla’s results, which could make the company qualify to become an S&P 500 constituent.
Before the opening, Drugmaker Biogen reported quarterly earnings of $10.26 per share, compared to a consensus estimate of $8.03 a share. Revenue came in above estimates as well, helped by about $100 million in accelerated sales due to the COVID-19 pandemic. Biogen also slightly cut its 2020 full-year revenue outlook.
The music streaming service Spotify has struck a new long-term licensing deal with Vivendi’s Universal Music Group. The deal could result in Spotify making money from the music companies by providing marketing, data, and analytics information.
iRobot reported quarterly earnings of $1.06 per share, significantly higher than the 20 cents a share consensus estimate. Revenue was also above estimates. Consumers staying at home due to the pandemic helped fuel stronger sales of the company’s Roomba automatic vacuum cleaner. The company also raised its revenue forecast.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 11058.50 will signal a resumption of the uptrend. The main trend will change to down if sellers take out 10358.75.
The minor range is 10358.75 to 11058.00. Its 50% level at 10708.25 is potential support.
The main range is 9728.75 to 11058.50. Its retracement zone at 10393.50 to 10236.75 is also potential support.
Daily Swing Chart Technical Forecast
The early price action suggests the one of the market on Wednesday is likely to be determined by trader reaction to the 50% level at 10708.25.
Bullish Scenario
A sustained move over 10708.25 will indicate that buyers are coming in to defend the uptrend. If this creates enough upside momentum then look for the rally to possibly extend past the main top at 11058.50.
Bearish Scenario
A sustained move under 10708.25 will be a sign of weakness. This could trigger a break into the 50% level at 10393.50, followed by the main bottom at 10358.75.
Side Notes
Investors are rotating from high-flying technical stocks into cyclical stocks so we could see the S&P 500 and Dow outperform the NASDAQ over the short-run.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
