E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 3, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index is recovering for a second day following a steep sell-off last week.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 5601.00 will signal a resumption of the downtrend. This could lead to a test of the next bottom at 5557.00.

The minor trend will turn up on a trade through 5776.00. A move through 5852.00 will change the main trend to up.

Last week, the index found support at 5601.00, inside the major retracement zone at 5630.75 to 5565.50.

The next major retracement zone is 5691.00 to 5732.25. The short-term retracement zone is 5726.50 to 5756.25. This level should be treated as resistance. The strongest resistance area is the pair of 50% levels at 5726.50 to 5732.25. Since the main trend is down, look for sellers to show up on a test of this zone.

Forecast

Based on the current price at 5684.75, the direction of the index the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 5691.00.

A sustained move over 5691.00 will indicate the presence of buyers. This could trigger a rally into 5726.50 to 5732.25.

The inability to overcome 5691.00 will signal the presence of sellers. The daily chart is open to the downside with potential targets at 5630.75 to 5601.00.

Watch the price action and read the order flow at 5691.00 all session. Be careful buying strength and selling weakness because of the expected low pre-holiday volume.