E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 7, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. After a steady pre-market session trade, the index is firming in reaction to today’s U.S. Non-Farm Payrolls report that came in much better-than-expected.

 Technical Analysis

The main trend is down according to the daily swing chart. However, the July 5 closing price reversal bottom has temporarily stopped the selling. A trade through 5667.75 will confirm the potentially bullish chart pattern. A trade through 5560.25 will negate the chart pattern and signal a resumption of the downtrend.

The main range is 5354.00 to 5907.50. Its retracement zone is 5630.75 to 5565.50. The market is currently trading inside this zone. Trader reaction to this zone will determine the longer-term direction of the market.

The intermediate range is 5557.00 to 5907.50. Its retracement zone at 5691.00 to 5732.25 is the next upside target.

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

Forecast

Based on the current price at 5616.75 and the earlier price action, the direction of the index today will likely 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 create the downside momentum needed to challenge the Fibonacci level at 5565.50, the closing price reversal bottom at 5560.25 and the main bottom at 5557.00.

Taking out 5557.00 could start an acceleration to the downside since the daily chart indicates there is no support until 5354.00.

Overtaking 5630.75 will signal the presence of buyers. This could trigger an acceleration into the Fibonacci level at 5691.00 and the short-term 50% level at 5706.25.

Watch the price action and read the order flow at 5630.75. This is the pivot of the day.