E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 26, 2016 Forecast

June E-mini NASDAQ-100 Index futures are called higher based on the early session trade. The market is trading inside yesterday’s range which indicates a little investor indecision. Investor have to continue to buy strength to keep the rally going, but are a little hesitant as we approach a major top.

The main trend is up according to the daily swing chart. The main range is 4584.50 to 4271.00. Its retracement zone is 4427.75 to 4464.75. Holding above this zone is also giving the index a strong upside bias. This zone should be considered support.

Based on the close at 4474.75 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 4476.50.

A sustained move over 4476.50 will indicate the presence of buyers. This could create enough upside momentum to challenge the uptrending angle at 4495.00.

Crossing to the strong side of the angle at 4495.00 will put the index in a bullish position with the next major target coming in at 4530.50. This angle is the trigger point for a rally into 4557.50, which is the last potential resistance angle before the 4584.50 main top.

A sustained move under 4476.50 will signal the presence of sellers. This could pressure the market back into the Fibonacci level at 4464.75.

The daily chart begins to open up under 4464.75 with the first target a steep uptrending angle at 4440.75. The daily chart opens up further under this angle with 4427.75 the next target.

If the 50% level at 4427.75 fails as support then look out below. This could trigger a steep break into 4383.00 and 4360.75.

Look for the bullish tone to continue on a sustained move over 4476.50 and a bearish tone to develop on a sustained move under 4464.75.