E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – April 4, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading nearly 2.0% lower during the pre-market session. Unless there is a dramatic turnaround, we should see a sharply lower opening in the cash market. The catalyst behind the selling is additional tariffs from China. The move means that the trade war is escalating.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The early selling has taken out the low from earlier in the week. This signals the selling is getting stronger. If this move creates enough downside momentum then sellers may go after the February 9 main bottom at 6192.50. This could trigger the start of a steep sell-off because there is nothing but air on the chart until 6049.75.

If 6192.50 holds as support then the retracement zone at 6583.00 to 6703.50 will be resistance.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the long-term uptrending Gann angle at 6336.50.

A sustained move under 6336.50 will indicate the selling is getting stronger. This could drive the market into the next long-term uptrending angle at 6264.50. This is the last potential support angle before the 6192.50 main bottom.

Crossing to the weak side of the steep downtrending Gann angle at 6254.50 will also put the index in a bearish position with 6192.50 the next target. This bottom is a possible trigger point for a steep sell-off.

A sustained move over 6336.50 will signal that aggressive counter-trend buyers or bargain-hunters are coming into the market. If they generate enough upside momentum then they could drive the index back into a pair of Gann angles at 6480.50 and 6529.25.

A strong rally could also put the index in a position to form a potentially bullish closing price reversal bottom.