E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 23, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading steady to better shortly before the cash market opening as investors eye the U.S. 10-year Treasury yield, which is in a positon to challenge the psychological 3 percent level.  A move through this level could put pressure on demand for stocks although the primary focus for investors this week remains earnings results.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6867.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 6306.75.

The main range is 7214.50 to 6306.75. Its retracement zone at 6760.75 to 6867.75 is the primary upside target. This zone, which acted like resistance last week, is controlling the longer-term direction of the index.

The minor range is 6306.75 to 6867.00. Its retracement zone at 6586.75 to 6520.75 is the primary downside target. Since the main range is up, buyers could come in on a test of this zone. Buyers will be trying to form a secondary higher bottom. Sellers are going to try to drive the market through this zone in an effort to make 6867.00 a major top and eventually challenge the main bottom at 6306.75.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to Friday’s low at 6646.00.

Holding above 6646.00 will indicate the presence of buyers. This could create the upside momentum needed to challenge the main 50% level at 6760.75. Look for sellers on the first test of this level, but an acceleration to the upside if buyers can overcome it.

A sustained move under 6646.00 will signal the presence of sellers. This could drive the market into 6586.75. Look for a technical bounce on the first test of this level. If it fails then look for the selling to extend into the Fibonacci level at 6520.75. Once again we could see a technical bounce on a test of this level.

Look for an acceleration to the downside if 6520.75 fails as support. The daily chart indicates there is plenty of room to the downside with 6306.75 the next major target.