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James Hyerczyk

June E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. The market was under pressure shortly after the opening, but then extended those losses later in the day after a report from ADP and Moody’s Analytics showed companies reduced payrolls by 27,000 in early March before the worst of the coronavirus-induced economic freeze.

At 13:13 GMT, June E-mini NASDAQ-100 Index futures are trading 7574.00, down 212.75 or -2.73%.

Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside earlier today with the confirmation of Tuesday’s closing price reversal top. The potentially bearish chart pattern does not change the main trend to down, but it could trigger the start of a 2 to 3 day correction into a 50% to 61.8% retracement zone.

A trade through 7995.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 6628.75.

The minor trend is also up. A trade through 7310.25 will change the minor trend to down. This will also shift momentum to down.

The intermediate range is 9006.75 to 6628.75. Its retracement zone at 7817.75 to 8098.50 is resistance. This area stopped the buying at 7995.00 on March 31.

The short-term range is 6628.75 to 7995.00. Its retracement zone at 7261.00 to 7111.75 is the primary downside target area.


Daily Technical Forecast

Based on the early price action and the current price at 7574.00, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Wednesday is likely to be determined by trader reaction to a downtrending Gann angle at 7662.75 and an uptrending Gann angle at 7524.75.

Bearish Scenario

A sustained move under 7524.75 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the short-term 50% level at 7261.00, followed by the short-term Fibonacci level at 7111.75 and an uptrending Gann angle at 7076.75.

Since the main trend is up, look for buyers to step in on a test of 7261.00 to 7111.75. They are going to try to form a secondary higher bottom.

Bullish Scenario

A sustained move over 7524.75 will signal the presence of buyers. The first upside target is the 50% level at 7817.75. This is followed by a downtrending Gann angle at 7924.75.

Taking out 7924.75 will indicate the buying is getting stronger. This should trigger a further rally into 7995.00, followed by 8098.50.

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