E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Straddling Major Support Angle at 7351.25

June E-mini NASDAQ-100 Index futures are trading lower shortly before the mid-session. Most of the selling pressure started early after traders took the week-end to digest the events that transpired last week between the United States and China.

The lack of progress in the trade talks and additional tariffs from the U.S. on China triggered the initial weakness. The index was further pressured by fresh tariffs on the U.S. by China. The world’s second largest economy retaliated against the U.S. by increasing tariffs 25% on $60 billion of U.S. imports on June 1.

The price action suggests that investors are trying to figure out whether the tariffs have been fully priced in or if there is the need for more downside pressure. The chart pattern indicates the index is approaching a trigger point that could lead to a steep decline.

At 15:11 GMT, June E-mini NASDAQ-100 Index futures are trading 7362.00, down 248.00 or -3.25%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending lower. The main trend will change to down on a trade through 7276.00. This is followed by additional main bottoms at 6965.75 and 6866.50.

A trade through 7879.50 will reaffirm the uptrend, however, this is highly unlikely today. The best chart pattern to indicate a shift in momentum will be a closing price reversal bottom.

The short-term range is 6965.75 to 7879.50. Its retracement zone at 7422.75 to 7314.75 is currently being tested. If this zone fails then look for the selling to extend into the intermediate retracement zone.

The intermediate retracement zone is 5847.25 to 7879.50. Its retracement zone comes in at 6863.25 to 6623.50.

The major retracement zone is 7035.00 to 6808.50. This zone is value. Buyers could come in on a test of this area.

The best potential support area is formed by a pair of 50% level at 6863.25 to 6808.50.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 7351.25. The index has been straddling this angle all session.

Bearish Scenario

A sustained move under 7351.25 will indicate the presence of sellers. This is followed by the short-term Fibonacci level at 7314.75 and the main bottom at 7276.00.

The main bottom at 7276.00 is a potential trigger point for an acceleration to the downside with the next major target the Fibonacci level at 7035.00.

Bullish Scenario

A sustained move over 7351.25 will signal the presence of buyers. The first target is the short-term 50% level at 7422.75, followed by the downtrending Gann angle at 7495.50.

Overtaking 7495.50 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target zone a resistance cluster at 7493.75 to 7495.50.