E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – March 20, 2018 Forecast

There’s a divergence in the stock market today with the NASDAQ Composite cash trading higher and June E-mini NASDAQ-100 Index futures lower. The difference was caused by the yesterday’s close. The cash market closes 15 minutes before the futures market. A late session rally by the futures contract created the discrepancy.

Daily Technical Swing Chart Analysis

The main trend is up according to the daily swing chart. However, the momentum shifted to the downside on March 13 with the formation of a closing price reversal top.

A trade through 7214.50 will negate the chart pattern and signal a resumption of the uptrend.

A move through yesterday’s low at 6821.25 will indicate the selling is getting stronger. If this generates enough downside momentum, we could see a move into the March 2 bottom at 6676.00. A trade through this bottom will change the main trend to down.

The main range is 6192.50 to 7214.50. Its main range is 6703.50 to 6583.00. This zone is the major support.

The intermediate range is 6676.00 to 7214.50. Its retracement zone at 6845.25 to 6881.75 is currently being tested.

The short-term range is 7214.50 to 6821.25. Its retracement zone at 7018.00 to 7064.25 is the next potential upside target. This zone is very important because sellers could show in an effort to form a secondary lower top.

Daily Technical Swing Chart Forecast

Based on the early price action, the direction of the index into the close is likely to be determined by trader reaction to the Fibonacci level at 6881.75.

A sustained move over 6881.75 will indicate the presence of buyers. If this generates enough momentum then look for the move to extend into 6945.25. It would have to be short-covering into the close because buyers are scarce today.

A sustained move under 6881.75 will signal the return of sellers. This could make yesterday’s low at 6821.25 a reasonable target.

Essentially, we could see a bullish close on a move over 6945.25 and a bearish close on a move under 6881.75.