Introduction
NQ has bounced off the EMA ribbon after a few days of sideways action. The ribbon spans 29,280.88 to 29,435.03 and has held through the pullback from the mid-August high. The measured target on this setup is 30,327, which is 701.75 points or 2.37% above current price, and sits where the descending trendline from the early-June high meets the resistance zone above. A close back below 29,400 puts price inside the ribbon and cancels the setup.
The Nvidia Print, in Context
- Nvidia reported fiscal Q2 2027 results on Wednesday 26 August after the close. Revenue came in at $96.22 billion, up 106% year over year against roughly $92.2 billion expected, with Q3 guidance of $105.84 billion to $110.16 billion. Shares rose 4.71% after hours and Nasdaq 100 futures gained around 1% in early Thursday trading. That move is the bounce on this chart.
- July PCE was also released on Wednesday 26 August. Headline rose 0.2% month-on-month and 3.7% year over year, with core unchanged from June at 3.3% year over year.
- Salesforce gained about 13% and CrowdStrike 10.49% after hours on their own results. An Iran-Oman agreement covering the Strait of Hormuz eased crude, with WTI near $82.
The bigger picture: Fed Chair Kevin Warsh delivers his first Jackson Hole keynote on Friday 28 August. That is the remaining event risk on the week — the Nvidia catalyst has already passed, and the AI trade cleared it.
Possible Trades & Technical Analysis
The bulls look to be in a strong seat at the moment, especially since NVIDIA had a positive earnings report. The daily candle today (27 August) breaking out of the EMA ribbon is a bullish sign that we could see 30,327 in the next week or so. The buying pressure needs to be strong enough to keep pushing and stay above the EMA ribbon however. If not, and the bears manage to push this back below 29,400, then the short term bull case is blown out of the water.
Bullish continuation
- Entry trigger: daily close above 29,660
- Stop: below 29,400
- Target: 30,327
Breakdown
- Entry trigger: daily close below 29,400
- Stop: above 29,660
- Target: 29,000
Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. This analysis is for informational and educational purposes only and does not constitute financial advice. Always conduct your own due diligence and consult with a licensed financial advisor before making any trading decisions.
