E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Taking Out 7657.75 Could Trigger Late Session Acceleration to Upside

Late in the trading session on Friday, the technology-based June E-mini NASDAQ-100 Index futures contract is trying to turn higher for the day. This would put it in a post a potentially bullish closing price reversal bottom that could signal the start of a 2 to 3 rally.

After President Trump triggered a steep sell-off shortly before the cash market opening, the index began paring some of its earlier losses after Treasury Secretary Steven Mnuchin said China trade talks were “constructive.” Chinese Vice Premier Liu He also said the talks went “fairly well,” according to reports.

At 19:07 GMT, June E-mini NASDAQ-100 Index is trading 7589.00, down 6.75 or -0.09%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The NASDAQ-100 Index is the only major index that did not change its main trend to down this week. Momentum is trending lower, however.

A trade through 7435.75 will signal a resumption of the downtrend with the next major target bottom coming in at 7276.00.

A move through 7879.50 will signal a resumption of the uptrend, but this is highly unlikely to occur. However, after trading lower for eleven sessions, or since its last main top on April 25, the index is now in a position to form a closing price reversal bottom.

The minor trend is down. This is controlling the downside momentum. A trade through 7654.50 will change the minor trend to up. This will also shift momentum to the upside.

The major retracement zone support is 7422.50 to 7314.75. Today’s intraday low at 7435.75 stopped just above this zone.

The main range is 7276.00 to 7879.50. Late in the session, the index is trading above its retracement zone at 7577.75 to 7506.50, making it support.

The short-term range is 7879.50 to 7435.75. Its retracement zone is the primary upside target at 7657.75 to 7710.00.

Daily Swing Chart Technical Forecast

Based on the current price at 7589.00, the direction of the June E-mini S&P 500 Index into the close is likely to be determined by trader reaction to yesterday’s close at 7595.25.

Bullish Scenario

A sustained move over 7595.25 will indicate the presence of buyers. If this creates enough upside momentum then look for a test of 7654.50 to 7657.75.

Overtaking 7657.75 will indicate the buying is getting stronger. This could trigger a rally into the Fib level at 7710.00. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 7595.25 will signal the presence of sellers. This could lead to a test of the 50% level at 7577.75. This is a potential trigger point for an acceleration into 7506.50, followed by 7435.75 and 7314.75.