E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Inside Day Suggests Impending Volatility

June E-mini NASDAQ-100 Index futures are trading higher shortly before the close, but backing off from its high. Today’s attempted breakout of Friday’s high failed at 6710.00.

The main trend is down according to the daily swing chart, however, Friday’s closing price reversal top may have been the first sign that upside momentum is slowing.

A trade through 6713.00 will negate the reversal top and shift momentum back to the upside.

A move through Friday’s low at 6606.25 will confirm the closing price top which could signal the start of a 2 to 3 day correction.

If the index continues to remain inside Friday’s range then this would suggest investor indecision and impending volatility.

The price action is also being manipulated by a series of retracement levels.

Resistance is lined up at 6703.50 and 6760.75. The latter is the trigger point for an acceleration to the upside with 6867.75 the next likely upside target.

On the downside, support comes in at 6642.00 and 6583.00.

The short-term range is 6306.75 to 6713.00. Its retracement zone at 6509.75 to 6462.00 is the primary downside target.

If volume picks up into the close then look for an upside bias to develop on a sustained move over 6703.50 and for a downside bias on a sustained move under 6642.00.