E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May 25, 2017 Forecast

June E-mini NASDAQ-100 index futures are called higher shortly before the cash market opening. Investors continue to digest the Fed Meeting Minutes released late Wednesday.

The rally through the previous top at 5727.25 has erased all of last week’s concerns over the political turbulence in Washington. This doesn’t mean the possibility of political turbulence has gone away, but at this time investors don’t seem to be too concerned. This may change next week when former FBI Director James Comey testifies before the Senate intelligence Committee.

Technical Analysis

The main trend is up according to the daily swing chart. There is no upside target at this time. This puts the emphasis on the chart pattern. Continuing to make higher-highs and higher-lows will mean the uptrend is getting stronger. Lower-highs and lower-lows will mean momentum is starting to shift to the downside.

Crossing below the former top at 5727.25 will also indicate that the selling is greater than the buying at current price levels.

The index is up five days since the main bottom at 5550.50 so we’re not in the window of time yet for a potentially bearish closing price reversal top. However, since we are at a new all-time high, we should start to watch for signs that the rally is getting weaker. We’re not trying to pick a top, but trying to protect the downside and avoid giving back too much of our gains.

Forecast

Look for an upside bias today because of the strong momentum triggered by the breakout over 5727.25 and the fact that there isn’t any resistance to stop a rally.

Our first sign that the selling is getting weaker will be a move under the main top at 5727.25. Taking out the steep uptrending angle at 2424.50 will indicate the selling pressure is getting stronger. If sellers can sustain this move then we could see an even steeper move to the downside.

Basically, stay long unless the index starts to break below 5727.25. This will be the first sign that the selling is becoming greater than the buying.