E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 25, 2017 Forecast

June E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index reached a new all-time high during the pre-market session. There is no resistance at this time so we have to watch the chart pattern.

Today is the 7^th day up from the recent bottom which puts the market in the window of time for a potentially bearish closing price reversal top. This chart pattern is not likely to lead to a change in trend, but it could fuel the start of a 2 to 3 day correction.

Technical Analysis

The main trend is up according to the daily swing chart. Besides the reversal top, a trade back below the previous top at 5481.25 will signal the presence of sellers. This will indicate the current breakout was fueled by weak buyers or short-covering.

Forecast

Based on the current price at 5521.25, the first upside target is an uptrending angle at 5533.25. Overtaking this angle will put the index in an extremely bullish position.

A break back under the angle at 5507.25 will be the first sign of weakness. This could derive the market back into the next uptrending angle at 5494.25. This is followed by the main top at 5481.25.

Crossing to the weak side of the top at 5481.25 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next major target angle coming in at 5459.50.