E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 18, 2018 Forecast

June E-mini NASDAQ-100 Index futures are trading slightly lower shortly before the cash market opening. Traders are watching Treasury yields and the meeting between the United States and China.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the index has been moving sideways to lower since posting its high for the week at 7013.50 on Monday. The market has also been trading inside Tuesday’s wide range for three sessions. This indicates investor indecision and impending volatility.

Taking out 6976.75 will be a sign of strength. Breaking out over 7013.50 will signal a resumption of the uptrend. A move through 6854.25 will indicate increasing selling pressure.

The short-term range is 6538.00 to 7013.50. Its retracement zone at 6775.75 to 6719.50 is the primary downside target. Look for a technical bounce on the first test of this zone. Since the main trend is up, buyers may try to form a secondary higher bottom.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini NASDAQ-100 Index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 6890.00.

A sustained move over 6890.00 will indicate the presence of buyers. If this generates enough upside momentum, we could see a rally into the minor top at 7013.50, followed by a long-term downtrending Gann angle at 7026.50.

A sustained move under 6890.00 will signal the presence of sellers. This could spike the market into a long-term downtrending Gann angle at 6838.50.

If 6838.50 fails as support then look for the selling to extend into the short-term 50% level at 6775.75, followed by a potential support cluster at 6719.50 to 6714.00.