E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Nearest Major Support is 8576.50
June E-mini NASDAQ-100 Index futures closed lower on Thursday after the five-week tally of unemployment claims topped 30 million and amid a plunge in consumer spending, according to the latest round of dismal indicators providing another snapshot of the crushing economic effects of the widespread shutdown. Despite the broad-based weakness, Facebook, Inc. climbed 5.2% after the social media company reported better-than-expected quarterly income.
On Thursday, June E-mini NASDAQ-100 Index futures settled at 8988.50, down 48.00 or -0.53%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum may have shifted to the downside with the formation of a closing price reversal top. This potentially bearish chart pattern won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 correction.
A trade through 9144.75 will negate the closing price reversal top and signal 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 up. A trade through 8654.50 will change the minor trend to down. This will reaffirm 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.
Daily Swing Chart Technical Forecast
Based on Thursday’s closing price reversal top, the direction of the June E-mini NASDAQ-100 Index futures the rest of the session on Friday is likely to be determined by trader reaction to Thursday’s low at 8856.50.
Bearish Scenario
A trade through 8856.50 will confirm the closing price reversal top. If this move generates enough downside momentum then look for the selling to possibly extend into the main Fibonacci level at 8576.50.
If 8576.50 fails as support then look for a possible acceleration to the downside with targets coming in at 8342.00 and 8204.50.
Bullish Scenario
A sustained move over 8856.50 will signal the return of buyers. If this generates enough upside momentum then look for the rally to possibly extend into the high at 9144.75.