E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Set Up for Bearish Closing Price Reversal Top

June E-mini NASDAQ-100 Index futures are treading higher on Thursday shortly after the cash market opening. The technology-driven index recovered from earlier weakness after data showed jobless claims fell last week and the Fed announced a broad $2.3 trillion effort to bolster local governments and small and mid-sized businesses.

The Federal Reserve announced a slew of programs that will total up to $2.3 trillion. CNBC’s Jim Cramer said on “Squawk Box” on Thursday, “This Fed is the most aggressive Fed. They do not want to be known as the reason why we went into a depression. I’m very impressed.”

Meanwhile, the U.S. Labor Department said more than 6 million Americans filed for unemployment benefits last week. Traders had priced in an increase of 5 million.

At 14:49 GMT, June E-mini NASDAQ-100 Index futures are trading 8220.50, up 30.75 or +0.38%. This is down from an intraday high of 8326.25.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session. A trade through 7376.00 will change the main trend to down.

The main range is 9780.50 to 6628.75. Its retracement zone at 8304.75 to 8653.00 is a strong resistance area. This zone is controlling the longer-term direction of the index.

The intermediate range is 9006.75 to 6628.75. Its retracement zone at 8098.25 to 7817.75 is potential support.

Daily Technical Forecast

Based on the early price action and the current price at 8220.50, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Thursday is likely to be determined by trader reaction to the uptrend Gann angle at 8016.00 and the major 50% level at 8304.75.

Bullish Scenario

Overtaking and sustaining a move over 8016.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a breakout to the upside with the next major target a potential resistance cluster at 8653.00 to 8660.50.

Bearish Scenario

A sustained move under 8304.50 will signal the presence of sellers. If this creates enough downside momentum then look for a potential break into the Fibonacci level at 8098.25, followed by an uptrending Gann angle at 8016.00.

Taking out 8016.00 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next target a 50% level at 7817.75, followed by another uptrending Gann angle at 7696.00.

Side Notes

A close under 8189.75 will produce a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.