E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 28, 2017 Forecast

September E-mini NASDAQ-100 Index futures are under pressure early Wednesday for a third session this week. The selling is being fueled by aggressive selling of technology stocks.

The index is now trading lower for the month. This puts it in a position to post a potentially bearish closing price reversal top on the monthly chart. This could lead to the start of a 2 to 3 month correction.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum has been trending lower since Monday’s closing price reversal top at 5852.00.

Taking out 5641.25 will change the main trend to down. This could trigger an acceleration into the next main bottom at 5557.00.

The short-term range is 5557.00 to 5907.50. Its retracement zone is 5732.25 to 5691.00. The index is currently trading on the weak side of this zone. This supports the growing downside bias.

The main range is 5354.00 to 5907.50. Its retracement zone at 5630.75 to 5564.50 is the primary downside target.

Forecast

Based on the current price at 5658.25 and the earlier price action, the direction of the NASDAQ Index is likely to be determined by trader reaction to the short-term Fibonacci level at 5691.00.

A sustained move under 5691.00 will indicate the presence of sellers. This could drive the index into the main bottom at 5641.25 and the main 50% level at 5630.75.

We could see a technical bounce on the first test of 5641.25 to 5630.75, but if it fails then look for an acceleration into the support cluster at 5565.50, 5562.00 and 5557.00.

Recovery 5691.00 will signal the return of buyers. This could create enough upside momentum to fuel a rally into the nearest downtrending angle at 5724.00. This is followed by the short-term 50% level at 5732.25.

Look for weakness as long as the NASDAQ stays below 5691.00. Look out to the downside if 5730.75 is taken out with heavy volume.