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James Hyerczyk
E-mini NASDAQ-100 Index

Technology-driven E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. The market is being underpinned by increased demand for risky assets on the back of earlier released better-than-expected earnings reports. Later this week, traders will get a chance to reaction to earnings reports from technology giants Amazon, Netflix, Apple and Facebook. Although the index appears to be only inching higher, there is plenty of cash on the sidelines to drive the market to an all-time high.

At 13:38 GMT, June E-mini NASDAQ-100 Index futures are trading 7753.50, up 20.75 or +0.26%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. The next major target is the October 3, 2018 main top at 7767.00.

The uptrend is safe for now, however, there is still the possibility of a closing price reversal top. This chart pattern won’t change the trend, but it could lead to a 2 to 3 day correction.

The minor trend is also up. A trade through 7660.25 will change the minor trend to down. This will also shift momentum to the downside.


Daily Technical Forecast

Based on the early trade, the direction of the June E-mini NASDAQ-100 Index futures contract will be determined by trader reaction to yesterday’s close at 7734.75.

Bullish Scenario

A sustained move over 7734.75 will indicate the presence of buyers. Taking out 7767.00 will indicate the buying is getting stronger. There is no resistance over this level, only targets. The next upside target is an uptrending Gann angle at 7852.00. Therefore, watch for an acceleration to the upside if 7767.00 is taken out with better-than-average volume.

Bearish Scenario

Taking out 7734.75 then turning lower for the session will put the index in a position to form a potentially bearish closing price reversal top. This could trigger a 2 to 3 day break. If 7660.25 fails then look for momentum to shift to the downside.

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