E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Closing Price Reversal Top Confirmed; 6792.75 Next Target

Earlier today, sellers took out yesterday’s low at 6972.25. This confirmed the closing price reversal top and set in motion today’s steep decline. This move often leads to a minimum 2 to 3 day correction.
James Hyerczyk
E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are trading sharply lower on Thursday. The initial pressure was generated by concerns over a slowing global economy. The second wave of selling occurred after White House economic advisor Larry Kudlow said China and the U.S. were still far away on striking a trade deal.

At 18:06 GMT, March E-mini NASDAQ-100 Index futures are trading 6892.25, down 103.50 or -1.48%.

Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of a closing price reversal top on Wednesday and its subsequent confirmation earlier today.

A trade through 7038.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 6521.50.

The minor trend is also up. A trade though 6616.75 will change the minor trend to down. This will reaffirm the change in momentum.

The index is currently trading inside a major retracement zone, bounded by 7022.25 and 6792.75. This zone is controlling the near-term direction of the index.

The next retracement zone support comes in at 6653.75 to 6494.75.

Daily Swing Chart Technical Forecast

Earlier today, sellers took out yesterday’s low at 6972.25. This confirmed the closing price reversal top and set in motion today’s steep decline. This move often leads to a minimum 2 to 3 day correction.

With sellers in control and momentum to the downside, we could see a break into the major 50% level at 6792.75. Watch for a technical bounce on the first test of this level. However, if it fails then look for an acceleration to the downside with the next target the short-term Fibonacci level at 6653.75. This is the last potential support level before the 6592.25 main bottom.

On the upside, the resistance is the major Fibonacci level at 7022.25 and the minor top at 7038.75.

Last Friday’s close is 6877.75. Taking out this level will put the index in a position to post a potentially bearish weekly closing price reversal top. This could signal the start of a 2 to 3 week correction.

Please let us know what you think in the comments below.

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