E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Breakout Over 7616.25 Targets 7767.00 Main Top

June E-mini NASDAQ-100 Index futures closed higher on Friday with the market supported by stronger-than-expected headline employment data, however, gains were limited by concerns over slow wage growth. Although the index was underpinned throughout the session by a combination of hope for a U.S.-China trade deal and solid jobs growth, buyers failed to post a new high for the week, which suggests investors weren’t too impressed by the news.

On Friday, the June E-mini NASDAQ-100 Index settled at 7604.25, up 42.75 or +0.56%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7616.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through 7276.00. The index is in no position to change the main trend to down, but it is up 7 sessions from the last main bottom, which puts it in a position to post a potentially bearish closing price reversal top. This chart pattern won’t change the main trend to down, but it could lead to a 2 to 3 day correction.

The short-term range is 7276.00 to 7616.25. Its retracement zone at 7446.00 to 7406.00 is the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this area.

The main range is 6965.75 to 7616.25. If the first retracement zone fails, then look for a possible test of the next retracement zone at 7291.00 to 7214.25.

Daily Swing Chart Forecast

Based on Friday’s close at 7604.25, the direction of the June E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to last week’s high at 7616.25.

Bullish Scenario

Taking out 7616.25 and sustaining the rally will indicate the presence of buyers. If this can create enough upside momentum then look for the rally to eventually extend into the October 3, 2018 main top at 7767.00.

Bearish Scenario

The inability to overcome 7616.25 will signal the presence of sellers. Taking out the low at 7513.25 will indicate the selling is getting stronger. If this creates enough downside momentum then look for the selling to possibly extend into the short-term 50% level at 7446.00.

Closing Price Reversal Top Situation

Taking out 7616.25 then closing below 7604.25 will form a closing price reversal top. If confirmed, then look for a 2 to 3 day break into at least 7446.00 to 7406.00.