E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 15, 2019 Forecast

June E-mini NASDAQ-100 Index futures are inching lower on Monday ahead of another string of earnings reports. Corporate earnings will be on the mind of traders again, with two of the biggest Wall Street bank reporting. On Friday, better-than-expected earnings from J.P. Morgan Chase fueled a strong rally. Before the opening bell, Citigroup, Goldman Sachs, Charles Schwab and M&T Bank are set to report.

At 08:33 GMT, June E-mini NASDAQ-100 Index futures are trading 7644.25, down 7.75 or -0.10%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7665.00 will signal a resumption of the uptrend. The main trend is safe for now, but there is room for a correction into a retracement zone.

The minor trend is also up. A trade through 7575.75 will change the minor trend to down. This will also shift momentum to the downside.

On the upside, the nearest target is the October 3, 2018 main top at 7767.00.

The short-term range is 7276.00 to 7665.00. If the minor trend changes to down then its retracement zone at 7470.50 to 7424.50 will become the primary downside target. Look for buyers on a test of this zone since it represents value.

The longer-term range is 6965.75 to 7665.00. Its retracement zone is 7315.25 to 7232.75.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to Friday’s close at 7652.25.

Bullish Scenario

A sustained move over 7652.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into last week’s high at 7665.00. Overtaking this level should lead to a test of the uptrending Gann angle at 7692.00. Overtaking this angle will put the index in a bullish position.

Bearish Scenario

A sustained move under 7652.25 will signal the presence of sellers. If this creates enough downside momentum, sellers may take a run at the minor bottom at 7575.75. The daily chart opens up to the downside under this level so don’t be surprised by an acceleration to the downside. The next major targets are an uptrending Gann angle at 7484.00 and a short-term 50% level at 7470.50.

Closing Price Reversal Top Set-up

Given the prolonged move up in terms of price and time, the index is set-up for a potentially bearish closing price reversal top. Taking out 7665.00 then turning lower for the session will put the index in a position to create this chart pattern. This could lead to a 2 to 3 day correction.