June E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index is also consolidating for a second day inside
June E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index is also consolidating for a second day inside Wednesday’s range as investors await the results of the House vote on the Trump administration’s healthcare plan.
The main trend is up according to the daily swing chart. A trade through 5299.25 will change the main trend to down. Earlier in the week, the market formed a potentially bullish closing price reversal top, indicating investors may have come in to defend the trend.
A trade through 5441.00 will signal a resumption of the uptrend.
The short-term range is 5441.00 to 5315.00. Its retracement zone is 5378.00 to 5393.00. This zone is controlling the short-term direction of the market. It is currently providing resistance, giving the index a slight downside bias.
The main range is 5084.00 to 5441.00. Its retracement zone at 5262.50 to 5220.25 is the primary downside target. An uptrending angle also passes through this zone at 5232.00, making it a valid target also.
Based on the current price at 5368.75, the direction of the market is likely to be determined by trader reaction to the short-term pivot at 5378.00.
Overtaking 5378.00 should lead to labored move into 5380.00 and a resistance cluster at 5393.00. We could see a technical bounce on the first test of this zone. Taking out 5393.00, however, could trigger an acceleration into series of potential resistance levels at 5411.00, 5429.00 and 5435.00. The latter is the last potential resistance angle before the 5441.00 main top.
The inability to overcome 5378.00 will indicate the presence of sellers. This could generate enough downside momentum to challenge the uptrending angle at 5331.00. This is followed by the low at 5315.00.
Watch for another acceleration to the downside if 5315.00 then 5299.25 fails with the next major targets 5262.50, 5232.00 and 5220.25.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.