E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – March 22, 2018 Forecast

June E-mini NASDAQ-100 Index futures are expected to open sharply lower based on the pre-market trade. The catalysts behind the selling pressure are the Fed’s rate hike projections, weakness in the tech sector led by social media giant Facebook and concerns over a possible trade war with China.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of a closing price reversal and main top at 7214.50 on March 13.

Today is also the seventh day down from the top which puts the index in the window of time for a possible closing price reversal bottom.

If the selling pressure persists today then 6676.00 will become the first downside target. A trade through this bottom will change the main trend to down.

The short-term range is 6676.00 to 7214.50. Its retracement zone at 6881.75 to 6945.25 is new resistance. Trading on the weak side of this zone is helping to give the market a downside bias.

The main range is 6192.50 to 7214.50. Its retracement zone at 6703.50 to 6583.00 is the primary downside target. We could see a technical bounce on the first test of this zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to 6881.75.

A sustained move under 6881.75 will indicate the presence of sellers. This could trigger a break into 6703.50 then 6676.00. Taking out 6676.00 could lead to a quick break into 6583.00.

Look for an acceleration to the downside if 6583.00 fails as support. The daily chart indicates there is plenty of room to the downside under this level.

Overcoming and sustaining a rally over 6881.75 will indicate the return of buyers. This could lead to an intraday short-covering rally.