E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 3, 2018 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Earlier in the session, the index crossed to the strong side of a steep downtrending Gann angle at 7102.50, trigger an acceleration to the upside.

Volume is expected to be well-below average so try to avoid getting trapped at a high or a low. It can be unforgiving on a day like today.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on June 28 and the subsequent confirmation the next trading session.

The minor trend is up. It turned up earlier today when buyers took out the minor top at 7123.75. This reaffirmed the shift in momentum.

The main retracement zone at 7107.00 to 7047.50 is support.

The short-term range is 7358.50 to 6956.00. Its retracement zone at 7157.25 to 7204.75 is the primary upside target. Since the main trend is down, sellers may come in on a test of this zone to defend the trend.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the two 50% levels at 7107.00 and 7157.25. Holding between these two levels could lead to a sideways trade. This could be dangerous if volume is low and it’s expected to come in below average since this is historically once of the slowest trading days of the year.

A sustained move over 7157.25 will be bullish. This could trigger an acceleration into the Fibonacci level at 7204.75, followed by a downtrending Gann angle at 7230.50.

A sustained move under 7107.00 will signal the return of sellers. Crossing to the weak side of the steep downtrending angle at 7102.50 and the uptrending Gann angle at 7079.50 will indicate the selling is getting stronger. This could trigger a further break into the short-term Fib level at 7047.50.

Be careful buying strength and selling weakness today. You get caught in a bull or bear trap.