E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Plenty of Room to Downside if 7666.00 Pivot Fails

Based on Wednesday’s price action and yesterday’s close at 7689.75, the direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the pivot at 7666.00.
James Hyerczyk
E-mini NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures bucked the trend in the futures and cash markets to close higher for the session on Wednesday. We’re not going to read into this too much since all ships rise with the sea. In other words, if the benchmark S&P 500 Index and the blue chip Dow turn lower, the June E-mini NASDAQ-100 Index futures contract is more than likely to follow them lower. Thin pre-holiday trading probably led to the unusual close.

At 22:22 GMT, June E-mini NASDAQ-100 Index futures are trading at 7689.25, down 0.50 or -0.01%.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7733.50 will signal a resumption of the uptrend. The market is in no position to change the main trend to down, but it is inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. A trade through 6598.75 will change the minor trend to down. Another minor bottom comes in at 7575.75.

The short-term range is 7598.75 to 7733.50. Its 50% level or pivot at 7666.00 is controlling the near-term direction of the index.

The intermediate-term range is 7276.00 to 7733.50. If the minor trend changes to down then its retracement zone at 7504.75 to 7450.75 will become the next downside target zone. Since the main trend is up, buyers are likely to return on a test of this zone since it is also a value area.

The main range is 6965.75 to 7733.50. Its retracement zone at 7349.50 to 7259.00 is the primary downside target and value zone.

Daily Swing Chart Technical Forecast

Based on Wednesday’s price action and yesterday’s close at 7689.75, the direction of the June E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the pivot at 7666.00.

Bullish Scenario

A sustained move over 7666.00 will indicate the presence of buyers. If this generates enough upside momentum then look for a test of yesterday’s high at 7733.50. Taking out this level could trigger a rally into the October 3, 2018 main top at 7767.00.

Bearish Scenario

A sustained move under 7666.00 will signal the presence of sellers. This could trigger an acceleration into the minor bottoms at 7598.75 and 7575.75. Taking out these levels will change the minor trend to down. This could trigger an acceleration to the downside with the next target the intermediate retracement zone at 7504.75 to 7450.75.

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