E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 22, 2017 Forecast

September E-mini NASDAQ-100 Index futures are trading lower after an early attempt to break out to the upside failed to attract enough buyers to extend the move beyond 5814.50.

Technical Analysis

The main trend is up according to the daily swing. It turned up on Wednesday when the index took out the previous main top at 5789.00. Taking out 5699.00 will change the minor trend to down. The main trend turns back down on a trade through 5641.25.

The short-term range is 5907.50 to 5641.25. Its retracement zone is 5774.25 to 5805.75. The market is currently trading inside this range. It looks as if this zone is controlling the direction of the index today.

The main range is 5557.00 to 5907.50. Its retracement zone is 5732.25 to 5691.00. This zone is new support.

Forecast

Based on the current price at 5771.25 and the earlier price action, the direction of the NASDAQ today is likely to be determined by trader reaction to the 50% level at 5774.25.

A sustained move under 5774.25 will indicate the presence of sellers. This could trigger a fast move into the downtrending angle at 5763.50.

Crossing to the weak side of the angle at 5763.50 could trigger an acceleration into the main 50% level at 5732.25, followed by an uptrending angle at 5721.25 then the main Fibonacci level at 5691.00.

A sustained move over 5774.25 will signal the return of buyers. This could drive the index into the resistance cluster at 5801.25 to 5805.75.

Overcoming 5805.75 will indicate the buying is getting stronger. This could lead to a test of the downtrending angle at 5835.50. This is also a trigger point for an acceleration into the next downtrending angle at 5871.50. This is the last potential resistance angle before the 5907.50 main top.

Basically, look for a downside bias on a sustained move under 5774.25 and for an upside bias to begin on a sustained move over 5805.75. Watch for a choppy trade inside this zone.