E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – March 23, 2017 Forecast

June E-mini NASDAQ-100 Index futures are trading lower as investors digest fresh economic data while waiting for a key vote on U.S. healthcare later today. Earlier today, Fed Chair Janet Yellen gave a speech, but did not talk about monetary policy.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside earlier in the week. This week’s closing price reversal top has put a lid on the rally and yesterday’s closing price reversal bottom seems to have put a temporary halt to the downside pressure.

A trade through 5315.00 will signal a resumption of the selling pressure. A move through 5299.25 will change the main trend to down. Taking out 5441.00 will negate the reversal top chart pattern and signal a resumption of the uptrend.

The short-term range is 5441.00 to 5315.00. Its retracement zone at 5378.00 to 4393.00 is the primary upside target. This zone is controlling the short-term direction of the market. Sellers are trying to produce a secondary lower top inside this range. Buyers are going to try to take it out and make 5315.00 a new higher bottom.

The main range is 5084.00 to 5441.00. Its retracement zone at 5262.50 to 5220.25 is the primary downside target.

Forecast

The results of the healthcare vote is expected to cause a volatile reaction in the market. Passing the healthcare bill is expected to generate a positive response. The inability to pass the bill should trigger a break.

The key area to watch on the upside is a resistance angle at 5372.00 and a resistance cluster at 5377.00 to 5378.00.

Taking out 5378.00 could trigger the start of a labored rally with potential targets at 5393.00, 5409.00, 5425.00, 5433.00 and 5437.00. Since a down move may just be starting, the resistance angles are bunched together. If the angles fail as resistance then look for the rally to expand over 5441.00.

A sustained move under 5372.00 will signal the presence of sellers. The daily chart is open under this angle to 5315.00.

If 5315.00 fails then look for a fast break into 5299.25. This is the last key support bottom before the major 50% level at 5262.50.

Generally speaking, look for an upside bias to develop over 5378.00 and for a downside bias under 5372.00.