E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 30, 2016 Forecast

The June E-mini NASDAQ-100 Index futures market is closed Monday because of the U.S. Memorial Day bank holiday so we’ll take a look at the weekly chart which should offer you guidance all week especially when combined with the daily chart analysis.

The main trend is down according to the weekly swing chart. A trade through 4584.50 will signal a resumption of the uptrend. A move through 4271.00 will turn the main trend to down.

The short-term range is 4584.50 to 4271.00. Its retracement zone is 4427.75 to 4464.75. The close above this zone reaffirms the upside bias. Both levels should be considered potential support this week.

The main range is 4705.25 to 3867.75. Its 50% level at 4286.50 should be considered support. This level was tested four times before the current rally.

Based on Friday’s close at 4510.00, the direction of the market this week is likely to be determined by trader reaction to the downtrending angle at 4497.25.

A sustained move over 4497.25 will indicate the presence of buyers. This could create enough upside momentum to challenge the top from the week-ending April 22 at 4584.50.

Taking out 4584.50 will signal a resumption of the uptrend with the next target a long-term downtrending angle at 4601.25. This is followed by another downtrending angle at 4653.25. This is the last potential resistance angle before the 4705.25 main top and contract high.

The inability to hold above 4497.25 will signal the presence of sellers. The first downside target is the short-term Fib level at 4464.75. This is followed closely by the short-term 50% level at 4427.75.

The daily chart begins to open up under 4427.75 so watch for a potential acceleration to the downside with the next target the major uptrending angle at 4379.75.

A sustained move under 4379.75 will signal a serious shift in investor sentiment and momentum. The next major targets under this angle are 4286.50 and 4271.00.

Look for the upside bias to continue as long as the index remains above 4497.25.