E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 2, 2018 Forecast

June E-mini NASDAQ-100 Index futures are called higher based on the pre-market trade. Traders are reacting to yesterday’s solid earnings report from Apple. Gains could be capped by uncertainty ahead of the Fed’s interest rate and monetary policy announcements at 1800 GMT. A hawkish Fed statement could pressure stocks late in the session.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending sideways to lower. A trade through 6772.00 will shift momentum to the upside. A move through 6867.00 will signal a resumption of the uptrend.

Downside momentum will get stronger if 6578.75 is taken out. A trade through 6429.25 will change the main trend to down.

Like the other indexes, the price action in the NASDAQ is also being controlled by a number of retracement levels. However, the daily chart clearly shows the way of least resistance is up.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index will be determined by trader reaction to the short-term Fibonacci level at 6699.75.

A sustained move over 6699.75 will indicate the presence of buyers. This could drive the index into 6760.75 and 6772.00.

We could see a surge to the upside over 6772.00 with the next target a resistance cluster at 6867.00 to 6867.75.

The trigger point for an acceleration to the upside is 6867.75.

A sustained move under 6699.75 will signal the presence of sellers. This could trigger a labored break with targets at 6648.00, 6586.75, 6578.75 and 6520.75.

Watch for the start of increased selling pressure under 6520.75. Look for an acceleration to the downside if 6429.25 is taken out with conviction.