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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 26, 2017 Forecast

By:
James Hyerczyk
Updated: Apr 26, 2017, 13:25 UTC

June E-mini NASDAQ-100 Index futures are trading marginally higher on Wednesday. The market is basically flat-lining ahead of today’s major tax reform

E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading marginally higher on Wednesday. The market is basically flat-lining ahead of today’s major tax reform announcement from President Trump.

There is no resistance so the rally is being driven by momentum and aggressive buying. The index is up eight days from its recent bottom which puts it 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 lead to a 2 to 3 day correction. It will send a signal that the selling is greater than the buying at current price levels.

E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Technical Analysis

The main trend is up according to the daily swing chart. The nearest support is the old top at 5481.25. Falling below this level will also indicate the selling is stronger than the buying.

Forecast

Based on the current price at 5549.25, the direction of the index today will be determined by trader reaction to yesterday’s high at 5557.25 and an uptrending angle at 5537.25.

If buyers take out 5557.25 then they’re going to have to sustain the move because a break back under yesterday’s close at 5548.25 will put the market in a positon to form the reversal top.

Breaking below the uptrending angle at 5537.25 will signal the presence of sellers. If volume begins to increase on this move then look for a possible steep break into the next two angles at 5509.25 and 5495.25.

Simply stated, look for a bullish bias on a sustained move over 5557.25 and for a bearish bias to develop on a sustained move under 5537.25.

About the Author

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.

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