E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 6, 2018 Forecast

September E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. The market seems to have absorbed the selling pressure shortly before the release of the U.S. Non-Farm Payrolls report and now may be ready to resume the earlier bullish tone. We just need some strong buying volume to sustain a breakout to the upside. Volume has been a problem all week because investors are still in holiday-mode.

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 follow-through move.

The minor trend is up. This reaffirms the momentum. A trade through 6987.50 will change the minor trend to down.

The main range is 6855.50 to 7358.50. Its retracement zone is 7107.00 to 7047.50. Traders are trying to turn this zone into support. It is controlling the near-term direction of the market.

The short-term range is 7358.50 to 6956.00. Its retracement zone at 7157.25 to 7204.75 is the primary upside target. This zone is very important to the structure of the market. Sellers are going to try to stop the rally in an effort to form a potentially bearish secondary lower top. Buyers are going to try to drive the index through this zone in an effort to increase the importance of the bottom at 6956.00.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the short-term 50% level at 7157.25.

A sustained move under 7157.25 will signal the presence of sellers. This could trigger a retest of the main 50% level at 7107.00, followed closely by the uptrending Gann angle at 7095.50.

If 7095.50 fails then look out to the downside. We could see a steep break into the main Fib level at 7047.50. The selling could extend under this level with the next support angle coming in at 6975.00.

Overtaking and sustaining a rally over 7157.25 will indicate the presence of buyers. This could fuel a spike into a downtrending Gann angle at 7318.50, followed by a short-term Fib at 7204.75.

The Fib level at 7204.75 is the trigger point for an acceleration to the upside with the next target angle at 7278.50.

Basically, we’re watching a pair of 50% levels at 7157.25 and 7107.00. Trader reaction to this levels could determine the near-term direction of the index.