E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 10, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly higher shortly before the cash market opening. Taking out Friday’s high made 5560.25 a new main bottom. The momentum may be shifting to the upside, but buyers face multiple layers of resistance.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 5852.00 will change the main trend to up. A move through 5560.25 will signal a resumption of the downtrend.

A series of retracement levels are likely to control the price action over the near-term.

The main range is 5354.00 to 5907.50. Its retracement zone is 5630.75 to 5565.50. This zone provided support last week and helped build a support base.

The intermediate range is 5557.00 to 5907.50. Its retracement zone is 5691.00 to 5732.25.

Another intermediate range is 5907.50 to 5560.25. Its retracement zone is 5734.00 to 5774.75.

The short-term range is 5852.00 to 5560.25. Its retracement zone is 5706.25 to 5740.50.

The best upside target today is the resistance cluster at 5732.25 to 5740.50. Since the main trend is down, we could see sellers come in on the first test of this area.

Forecast

Based on the current price at 5672.25, the direction of the market today is likely to be determined by trader reaction to 5691.00.

A sustained move over 5691.00 will indicate the presence of buyers. This could lead to a stair-step rally with potential targets at 5706.25 then 5732.25 and 5740.50.

A failure to overcome 5691.00 will signal the presence of sellers. If this creates enough downside momentum then look for a break into the main 50% level at 5630.75. This is the trigger point for an acceleration into the main Fibonacci level at 5565.40. This is followed by two main bottoms at 5560.25 and 5557.00.