NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 7773.50, Weakens Under 7798.50

June E-mini NASDAQ-100 Index futures are trading lower at the mid-session on Monday, but the market is well-off its low for the day. Early weakness was fueled by a pair of tweets from President Trump, announcing that the U.S. will hike tariffs on goods imported from China, increasing fears that a highly anticipated trade deal between the two economic powerhouses could fall through.

At 18:30 GMT, June E-mini NASDAQ-100 Index futures are trading 7783.00, down 81.75 or -1.05%.

The price action suggests the reaction to the news is relatively calm and traders are under control. Some think the earlier steep decline was headline driven and that all Trump is trying to do is put pressure on China to finish the trade deal.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 7879.50 will signal a resumption of the uptrend. A move through today’s intraday low at 7667.50 will indicate the selling is getting stronger.

The minor trend is down. This is controlling the momentum.

The main range is 7276.00 to 7879.50. Its retracement zone at 7577.75 to 7506.50 is the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this area.

The minor range is 7879.50 to 7667.50. Its retracement zone at 7773.50 to 7798.50 is the primary upside target. This zone is currently being tested. Trader reaction to this zone will set the tone into the close.

Daily Swing Chart Technical Forecast

Based on the current price action, the direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 7773.50 to 7798.50.

Bullish Scenario

A sustained move over 7798.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the minor top at 7872.50 and the main top at 7879.50.

Bearish Scenario

A failure at 7798.50 will indicate the buying is getting weaker, or the selling is getting stronger. However, a sustained move under 7773.50 will signal the presence of sellers. This could trigger an acceleration to the downside and a likely retracement of the entire day’s range.