E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – June 30, 2016 Forecast

September E-mini NASDAQ-100 Index futures are trading slightly higher shortly before the cash market opening. There was no follow-through to the upside following yesterday’s strong rally, producing an inside move. This indicates investor indecision and impending volatility.

The main trend is down according to the daily swing chart, however, momentum has been to the upside the last three sessions. The index is currently testing a retracement so that could determine the near-term direction of the market.

The main range is 4494.00 to 4167.75. Its retracement zone is 4330.75 to 4369.50. Trader reaction to this zone will determine whether the rally will stop and a new secondary lower top will form, or if the buying will increase, leading to a challenge of the recent main top.

Based on Wednesday’s close at 4362.75 and the current price action, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 4366.00.

A sustained move over 4366.00 will signal the presence of buyers. This should lead to a quick test of the Fib level at 4369.50. This level is the trigger point for an acceleration to the upside with the next target angle coming in at 4430.00.

A sustained move under 4366.00 will indicate the presence of sellers. This could create enough downside momentum to challenge the 50% level at 4330.75. This level is the trigger point for an acceleration to the downside with the next target angle coming in at 4263.75.

Look for an upside bias to develop on a sustained move over 4369.50 and a downside bias on a sustained move under 4366.00.

Longer-term traders should watch 4369.50 and 4330.75.