E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 5, 2018 Forecast

September E-mini NASDAQ-100 Index futures are called higher based on the pre-market trade. Investors are responding to better performances in Asia and Europe. Although the index is higher, where still not confident that we’re looking at real volume due to yesterday’s bank holiday, today’s Fed minutes and Friday’s U.S. Non-Farm Payrolls report. Below average volume will make it difficult to make momentum plays today so be careful buying strength and selling weakness.

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.

The minor trend is up. A trade through 7165.00 will reaffirm the uptrend. A move through 6987.50 will change the minor trend to down.

A trade through 6956.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 6855.50 to 7358.50. Its retracement zone at 7107.00 to 7047.50 is currently being tested. This zone is controlling the near-term direction of the index.

The short-term range is 7358.50 to 6956.00. Its retracement zone at 7157.25 to 7204.75 is the primary upside target.

Daily Technical Forecast

Based on the early trade, the direction of the index the rest of the day will likely be determined by trader reaction to the uptrending Gann angle at 7087.50.

A sustained move over 7087.50 will signal the presence of buyers. This could drive the index into the 50% level at 7107.00. This price is a potential trigger point for an acceleration to the upside with the next targets 7157.25 and 7165.00. Overcoming 7165.00 will signal that the buying is getting stronger with the next targets a resistance cluster at 7204.75 to 7214.50.

A sustained move under 7087.50 will indicate the presence of sellers. If this generates enough downside momentum then look for the selling to extend into 7047.50.

Selling pressure is likely to increase under 7047.50 with the next target angle coming in at 6913.50.

Essentially, we’re looking for a strong upside bias to develop on a sustained move over 7107.00 and for a downside bias to develop on a sustained move under 7047.50. However, buying strength and selling weakness will be a challenge if volume is below average. If given the opportunity, we may have to let these levels be violated then treat them like support and resistance.