E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 5, 2016 Forecast

June E-mini NASDAQ-100 Index futures are trading slightly better with the index consolidating on low volume ahead of Friday’s U.S. Non-Farm Payrolls report.

The main trend is down according to the daily swing chart. The index is not in a positon to turn the main trend to up, but it is in the window of time for a potentially bullish closing price reversal bottom.

The main range is 3867.75 to 4584.50. Its retracement zone at 4226.00 to 4141.50 is the primary downside target.

The intermediate range is 4171.75 to 4584.50. Its retracement zone is 4378.25 to 4329.50. The market is currently straddling the lower or Fibonacci level at 4329.50.

The short-term range is 4584.50 to 4296.75. Its retracement zone at 4440.75 to 4474.50 is the primary upside target.

Based on yesterday’s close at 4309.75 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the Fib level at 4329.50.

A sustained move over 4329.50 will indicate the presence of buyers. Overtaking the long-term uptrending angle at 4331.75 will indicate the buying is getting stronger. This could create enough upside momentum to challenge the 50% level at 4378.25 and the downtrending angle at 4392.50.

The angle at 4392.50 is the trigger point for an acceleration to the upside with the next target a 50% level at 4440.75.

A sustained move under 4329.50 will signal the presence of sellers. The first target is last week’s low at 4296.75. The daily chart is wide open under this level with the next target the main 50% level at 4226.00.

Watch the price action and read the order flow at 4329.50 today. Trader reaction to this price will set the tone for the day.