E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 29, 2016 Forecast

June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The index posted an inside move during the premarket session, suggesting impending volatility and investor indecision.

The main trend is down according to the daily swing chart. The main trend is not likely to turn up today, but the index is down eight days from its recent top, putting it in a position to post a potentially bullish closing price reversal bottom.

The main range is 4171.75 to 4584.50. Its retracement zone is 4378.00 to 4329.50. This zone is the primary downside target so a test of this zone could start to draw the attention of value-seekers. If enough buyers come in on a test of this zone, we could see the start of a short-covering rally.

Based on yesterday’s close at 4382.00 and the early price action, the direction of the market today is likely to be determined by trader reaction to the main 50% level at 4378.00.

A sustained move over 4378.00 will indicate the presence of buyers. This could create upside momentum. The daily chart indicates there is room to the upside with the next likely target a steep downtrending angle at 4456.50.

A sustained move under 4378.00 will signal the presence of sellers. The best downside target under this level is a potential support cluster at 4329.50 to 4328.50.

Crossing to the weak side of the angle at 4328.50 will put the market in a bearish position with the next target a long-term uptrending angle at 4299.75.

Watch the price action and read the order flow at 4299.75 today. Trader reaction to this 50% level will tell us if sellers are still in control or if buyers are starting to return.