E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 26, 2018 Forecast

September E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. The price action suggests that yesterday’s steep sell-off may have been an over-reaction to a report in The Wall Street Journal that the U.S. plans to impose trade restrictions on China, a story that was basically denied by the U.S.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Monday when sellers took out 7157.50. A move through 7358.50 will negate a closing price reversal top and signal a resumption of the uptrend.

The main range is 6563.25 to 7358.50. Its retracement zone at 6960.75 to 6867.00 is the primary downside target. Buyers could show up on a test of this area because it represents value.

The intermediate 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 6995.50. Its retracement zone at 7177.00 to 7220.00 is the next upside target. This zone is important because sellers may try to form a secondary lower top on a test of this area. If successful, this would send out a bearish signal.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the intermediate Fib level at 7047.50.

A sustained move over 7047.50 will indicate the presence of buyers. This could lead to a quick test of the 50% level at 7107.00.

Overtaking 7107.00 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target zone coming in at 7177.00 to 7220.00.

A sustained move under 7047.50 will signal the presence of sellers. This could signal a resumption of the selling pressure with initial targets coming in at 6995.50 and 6960.75.

A failure at 6960.75 will indicate the selling is getting stronger. This could trigger an acceleration into 6867.00 to 6855.50.

The daily chart is wide open under 6855.50 so the bulls have to defend this area or prices will break sharply lower.