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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Over 9096.25, Weak Under 8950.75

James Hyerczyk

June E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening on Friday after giving up earlier gains. Traders are saying the selling pressure is being fueled by position-squaring ahead of today’s U.S. Retail Sales report, due to be released at 12:30 GMT.

On Thursday, the market posted a late session rally after major tech companies Apple and Alphabet reversed earlier losses. Despite yesterday’s solid gains, the index is in a position to post its biggest weekly decline since late March.

At 11:04 GMT, June E-mini NASDAQ-100 Index futures are trading 9006.75, down 72.75 or -0.80%.

Daily June E-mini NASDAQ-100 Index

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 on May 12.

A trade through 9345.50 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through the last main bottom at 8556.25.

The minor trend is also up. A trade through 8847.00 will change the minor trend to down. This will also confirm the shift in momentum to down.

The minor range is 9345.50 to 8847.00. Its 50% level at 9096.25 is potential resistance.

The short-term range is 8556.25 to 9345.50. Its retracement zone at 8950.75 to 8857.75 is potential support.

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

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 9006.75, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Friday is likely to be determined by trader reaction to the pivot at 9096.25.

Bullish Scenario

A sustained move over 9096.25 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for an eventual retest of the 9345.50 main top.

Bearish Scenario

A sustained move under 9096.25 will signal the presence of sellers. This could lead to a labored break with potential targets 8950.75, 8857.75 and 8847.00.

The minor bottom at 8847.00 is a potential trigger point for an acceleration to the downside with 8576.50 and 8556.25 the next likely downside targets.

This article was originally posted on FX Empire