E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trading on Strong Side of Major Retracement Zone

June E-mini NASDAQ-100 Index futures are trading slower shortly after the cash market opening on Monday, but the market is off less than 1% with the brunt of today’s selling pressure hitting the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average.

The technology driven index is falling in sympathy with a steep drop in oil prices and the energy sector, which are dragging the S&P and Dow sharply lower.

At 14:43 GMT, June E-mini NASDAQ-100 Index futures are trading 8797.75, down 11.25 or -0.14%.

As of Friday’s close, the NASDAQ had registered its best two weeks since 2001, powered by new record highs for Netflix, Inc. and Amazon.com, Inc. – deemed “stay-at-home” stocks as widespread lockdowns fueled demand for online streaming and home delivery of groceries.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8966.75 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last main bottom at 7376.00.

The minor trend is also up. A trade through 8073.25 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is support. This zone is controlling the longer-term direction of the index. Holding above this zone will help generate an upside bias.

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

Combining the two retracement zones makes 8204.50 to 8098.25 a major support cluster.

The short-term range is 6628.75 to 8966.75. Its retracement zone at 7817.75 to 7521.75 is additional support.

Daily Swing Chart Technical Forecast

We’re looking for the upside bias to continue as long as 8576.50 holds as support. Overcoming last week’s high at 8966.75 will indicate the buying is getting stronger. If this move can create enough upside momentum then look for a surge into the next main top at 9006.75.

On the downside, the first target is the major Fibonacci level at 8576.50. Momentum will shift to the downside if this level fails. This could also trigger an acceleration to the downside with the next target the support cluster at 8204.50 to 8098.25.