June E-mini NASDAQ-100 Index futures are trading better shortly before the cash market opening. The trading range is small and volume is low as investors
June E-mini NASDAQ-100 Index futures are trading better shortly before the cash market opening. The trading range is small and volume is low as investors await this morning’s U.S. preliminary GDP report at 1230 GMT and comments from Fed Chair Janet Yellen this afternoon.
The main trend is up according to the daily swing chart. The market is in no danger of turning the main trend to down, but we could see a closing price reversal top. This would signal a shift in momentum.
The main range is 4584.50 to 4271.00. The market is trading on the strong side of its retracement zone at 4464.75 to 4427.75, giving it an upside bias. This area is new support.
Based on the current price at 4502.50, the next upside target is a steep uptrending angle at 4511.00. Crossing to the strong side of this angle will put the index in a bullish position.
This could trigger a further rally into the next long-term downtrending angle at 4528.50. This is a potential trigger point for a breakout into the next angle at 4556.50. This is the last major downtrending angle before the 4584.50 main top.
The inability to overcome 4502.50 will indicate the presence of sellers. This could create enough downside momentum to challenge the price cluster at 4472.75 to 4472.50. This is followed closely by the main Fib level at 4464.75.
The Fib level at 4464.75 is the trigger point for the start of a steep sell-off. The next major target under the Fib is the 50% level at 4427.75.
We’re going to watch the reaction at 4511.00 if tested. This should tell us if investors are still willing to buy strength at current price levels or if they have decided to start booking profits. We’re not expecting much upside action unless the buying can take out 4528.50. We expect a labored break until the selling is strong enough to take out 4464.75.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.