E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Dump Under 6421.00, Move Over 6583.00 Means Buyers Have Returned

June E-mini NASDAQ-100 Index futures are posting a most volatile session on Wednesday with prices trading on both sides of the market, but mainly leaning to the downside. The price action is being driven by weakness in Amazon and Apple shares.

At 1640 GMT, the index is at 6533.50, down 27.75 or -0.42%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down earlier today when sellers took out the previous main bottom at 6490.00. The new main top is 6849.25. A trade through this top will change the main trend to up.

A move later in the session through 6421.00 will signal a resumption of the downtrend.

The main range is 6192.50 to 7214.50. Its retracement zone is 6583.00 to 6703.50. The market is currently trading on the weak side of this zone, giving the index an intraday downside bias. Traders should treat this zone like resistance.

Daily Swing Chart Technical Forecast

Based on the earlier price action, the direction of the index into the close is likely to be determined by trader reaction to 6583.00 and 6421.00.

Overtaking 6583.00 will signal the return of buyers. This will also mean the index has turned higher for the session, putting it in a position to post a potentially bullish closing price reversal top on the daily chart. Over this level, there is no resistance until the 50% level at 6703.50.

A sustained move under 6583.00 will indicate the market is still in the strong hands of the short-sellers. However, look for a possible acceleration to the downside on a big volume move under 6421.00.

The daily chart shows there is plenty of room to the downside today with the next major target coming in at 6192.50. So essentially, 6421.00 is the trigger point for an acceleration to the downside.