E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 1, 2018 Forecast

June E-mini NASDAQ-100 Index futures gave up earlier gains and are now trading lower for the session. The volatility is being fueled by aggressive position-squaring ahead of today’s release of quarterly earnings from Apple after the session. Traders are also being impacted by the possibility of higher interest rates from the Fed. The central bank starts its two-day meeting later today.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, buyers are having trouble maintaining the upside momentum.

A trade through 6867.00 will reaffirm the uptrend. The main trend will change to down on a move through 6429.25.

The price action is also being manipulated by a series of retracement levels.

The main range is 7214.50 to 6306.75. Its retracement zone at 6760.75 to 6867.75 is resistance.

The intermediate range is 6306.75 to 6867.00. Its retracement zone at 6586.75 to 6520.75 is acting like support.

The short-term range is 6867.00 to 6429.25. The index is currently straddling its retracement zone at 6648.00 to 6699.75.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 6648.00.

A sustained move under 6648.00 will signal the presence of sellers. This could drive the market into the intermediate retracement zone at 6586.75 to 6520.75. Since the main trend is up according to the daily swing chart, buyers could come in on the dips.

If 6520.75 fails then we could see a test of the main bottom at 6429.25. Taking out this bottom will change the main trend to down. This could trigger a further break into the next main bottom at 6306.75.

A sustained move over 6648.00 will indicate the presence of buyers. This could create the upside momentum needed to challenge 6699.75 then 6760.75.

The index starts to accelerate over 6760.75 with the next major target 6867.00 to 6867.75. This area is the potential trigger point for a surge to the upside.