E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 6, 2016 Forecast

June E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. The weaker-than-expected U.S. Non-Farm Payrolls report is putting pressure on the market.

Based on the current price at 4286.00, volatility should be featured today along with the possibility of an expanded range.

The main trend is down according to the daily swing chart, however, the index begins today’s session in the window of time for a potentially bullish closing price reversal bottom. The inability to follow-through to the downside early in the session could help trigger an intraday short-covering rally.

If the selling persists then look for a possible extension of the break into the 50% level at 4226.00. The daily chart opens up further under this level with the next target coming in at 4141.50.

A short-covering rally could drive the market into 4329.50 or 4340.50. Overtaking 4340.50 could extend the rally into 4376.50 and 4378.25.

The trigger point for an acceleration to the upside is 4378.25.

Momentum will control the trade today. Right now the momentum is to the downside so we’re going to be looking for an early drive into 4226.00. However, we’ll also be watching for a counter-trend buying opportunity if an intraday closing price reversal starts to form.