Based on the early trade, the direction of the index is being controlled by the Fibonacci level at 6583.00.
The early rally by the June E-mini NASDAQ-100 futures contract shows the index in a position to breakout to the upside.
The main trend is down according to the daily swing chart. However, momentum shifted to the upside after last Friday’s closing price reversal bottom and subsequent follow-through rally. A trade through 6849.25 will change the main trend to up. A move through 6306.75 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The minor trend is up. It turned up when buyers took out 6653.75. A trade through 6408.50 will change the minor trend to down.
A move through 6654.50 will signal a resumption of the minor uptrend.
Based on the early trade, the direction of the index is being controlled by the Fibonacci level at 6583.00.
A sustained move over 6583.00 will indicate the presence of buyer. This could lead to a labored rally with potential upside targets lined up at 6642.00, 6654.50, 6703.50 and 6760.75.
The trigger point for an acceleration to the upside is 6760.75. A move through this level could drive the index into 6849.25 then 6867.75.
A sustained move under 6583.00 will signal the presence of sellers. This could trigger a steep break into 6480.50 then 6439.50.
Look out to the downside if 6439.50 fails as support.
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.