E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 24, 2016 Forecast

June E-mini NASDAQ-100 Index futures are called higher shortly before the cash market opening. The recovery from early session weakness suggests that investors are preparing to launch an attempted breakout over key resistance levels. This move will work if better-than-average buying is behind the rally.

The main trend is down according to the daily swing chart. A trade through 4393.75 will turn the main trend to up.

The short-term term range is 4271.00 to 4403.00. Its 50% level or pivot is 4337.00. Holding above this level is a sign of strength.

The main range is 4584.50 to 4271.00. Its retracement zone at 4427.75 to 4464.75 is the primary upside target.

Based on the current price at 4372.00, the next potential upside target is a steep uptrending angle at 4376.75. Crossing to the strong side of this angle will indicate the presence of buyers. This could trigger an extension into the long-term downtrending angle at 4384.50. Overcoming this angle will indicate the buying is getting stronger.

A sustained move over 4384.50 could create enough upside momentum to challenge the pair of main tops at 4393.75 and 4403.00. Overtaking this levels will change the main trend to up and likely fuel a rally into the main 50% level at 4427.75

The inability to overcome the steep angle at 4376.75 will indicate the presence of sellers. This could drive the index back into a price cluster at 4367.00. This cluster has to hold or the index could collapse back into the pivot at 4337.00 or the uptrending angle at 4328.75.

Additional downside targets come in at 4319.00, 4304.75 and 4295.00. The latter is the last potential support angle before the 4280.75 and 4271.00 main bottoms.

Watch the price action and read the order flow at 4376.75 and 4367.00 shortly after the opening. Look for an upside bias to develop on a sustained move over 4376.75 and a downside bias on a sustained move over 4367.00.