June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening, but well off its lows. Investors are trying to claw back earlier losses that were fueled by concerns over an escalating trade war between China and the U.S.
The index posted a two-sided trade after the release of the jobs report. Some read the headline miss as indicating the economy is weakening. Others perceived it to mean the Fed won’t have to be that aggressive with interest rates.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the closing price reversal bottom on Wednesday and yesterday’s confirmation of the chart pattern.
A trade through 6849.25 will change the main trend to up. A move through 6306.75 will negate the chart pattern and signal a resumption of the downtrend.
The minor trend changed to up on Thursday when buyers took out 6653.75. A trade through 6654.50 will signal a resumption of the minor trend.
The short-term range is 6306.75 to 6654.50. Its retracement zone at 6480.50 to 6439.50 is support.
On the upside, resistance levels are layered at 6483.00, 6642.00, 6703.50 and 6760.75.
The market starts to open up to the upside on a sustained move over 6760.75 with targets coming in at 6849.25 and 6867.75.
Daily Swing Chart Technical Forecast
Based on the early trade, the direction of the index today is likely to be determined by trader reaction to 6583.00.
A sustained move under 6583.00 will indicate the presence of sellers. This could lead to a retest of 6480.50. This is followed by 6439.50. Momentum will shift to the downside if this level is violated with 6306.75 the next target.
Overtaking and sustaining a move over 6583.00 will signal the presence of buyers. This could generate the upside momentum needed to take out 6642.00 and 6654.50.
The rally will strengthen on a move over 6654.50 with targets lined up at 6703.50 and 6760.75.
Things could get heated up over 6760.75 with the next targets 6849.25 and 6867.75.
Watch the price action and read the order flow at 6583.00 all session.