E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Over 8743.50, Weak Under 8576.50

June E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. The selling is begin fueled by weakness in the broader-based S&P 500 Index, particularly the airline sector.

Investors are also grappling with worries over another spat between China and the U.S. On Sunday, Secretary of State Mike Pompeo said there was a ‘significant amount of evidence” connecting the coronavirus to a lab in the Wuhan region of China.

At 13:50 GMT, June E-mini NASDAQ-100 Index futures are trading 8692.00, down 26.00 or -0.30%.

The actual top occurred last Thursday after President Trump threatened China with new tariffs. This would compound the weakness in the global economy and push it closer to depression.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 9144.75 on April 30.

A trade through 9144.75 will negate the closing price reversal top, signaling a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 8342.00.

The minor trend is also down. It changed to down on a move through 8654.50. This confirmed the shift in momentum to down.

The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is support. This zone is also controlling the longer-term direction of the index.

The short-term range is 8342.00 to 9144.75. Its 50% level or pivot at 8743.50 is potential support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 8692.00, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Monday is likely to be determined by trader reaction to the short-term pivot at 8743.50 and the major Fibonacci level at 8576.50.

Bullish Scenario

A sustained move over 8743.50 will signal the presence of buyers. This could trigger a surge into 8850.50, followed by the main top at 9144.75.

Bearish Scenario

The inability to sustain a rally over 8743.50 will indicate the presence of sellers. Taking out 8576.50 could trigger an acceleration to the downside with the next targets coming in at 8342.00 and 8204.50.