E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 28, 2016 Forecast

June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Unlike the S&P 500 which plunged after the Bank of Japan announcement, the index held yesterday’s low. This may be an indication of oversold conditions.

The main trend is down according to the daily swing chart. The main range is 4171.75 to 4584.50. Its retracement zone at 4378.00 to 4329.50 is the primary downside target. Yesterday, the index tested the upper or 50% level at 4378.00. The actual low was 4372.25. This move drew the attention of profit-takers and aggressive counter-trend buyers.

The short-term range is 4584.50 to 4372.25. Its retracement zone at 4478.50 to 4503.50 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this zone. They are going to try to produce a potentially bearish secondary lower top.

Based on the current price at 4405.75, traders will have two choices early today. Firstly, the short-covering could resume with 4472.50 the first upside target. Sellers may come in on the first test of this angle. If buyers take it out then look for a rally into 4478.50 to 4503.50.

Secondly, the first downside target is the major 50% level at 4378.00. This is followed by yesterday’s low at 4372.25 and a steep downtrending angle at 4360.50.

Crossing to the weak side of the angle at 4360.50 will indicate the presence of sellers with the next target the main Fibonacci level at 4329.50.

The price action and the chart pattern suggests that traders should look for volatility. It also suggests we could be looking at a two-sided trade today.