E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 6, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading lower shortly ahead of the cash market opening. The index has been under pressure since the opening which likely means traders are taking production against the escalation of activity with North Korea. Today’s weaker-than-expected ADP private sector jobs report could also be putting pressure on the index.

Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom has temporarily stopped the selling.

A trade through 5667.25 will confirm the closing price reversal bottom. A move through 5560.25 will negate the chart pattern and signal a resumption of the downtrend.

A move through the next main bottom at 5557.00 will reaffirm the downtrend. The daily chart is wide open to the downside with the next major target coming in at 5354.00.

The main range is 5354.00 to 5907.50. Its retracement zone is 5630.75 to 5565.25. The index is currently straddling this zone.

The intermediate range is 5557.00 to 5907.50. Its retracement zone at 5691.00 to 5732.25 provided resistance earlier in the week.

The short-term range is 5852.00 to 5560.25. Its retracement zone at 5706.25 to 5740.50 is the primary upside target.

Forecast

Based on the current price at 5607.00 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 5630.75.

A sustained move under 5630.75 will signal the presence of sellers. This could lead to a test of the Fib at 5565.25. This is followed by the closing price reversal bottom at 5560.25 and the main bottom at 5557.00.

Look out to the downside if 5557.00 is taken out with rising selling volume.

A sustained move over 5630.75 will signal the presence of buyers. This could trigger a surge into 5691.00. Overtaking this level could lead to a labored rally with targets at 5706.25, 5732.25 and 5740.50.

A sustained move under 5630.75 will give the market a downside bias. A sustained move over 5630.75 will shift momentum to the upside.