E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Close Under 9485.50 Forms Reversal Top

June E-mini NASDAQ-100 Index futures are trading mixed on Thursday shortly after the cash market opening. The index traded lower early in the session on worries about simmering tensions between the United States and China, but recovered those losses after the release of the latest weekly jobless claims data. The numbers were still bad, but smaller than previous weeks, suggesting the curve may be flattening.

In other economic news, US Flash Manufacturing PMI and Flash Services PMI came in higher than expected, but remained in contraction territory. The Conference Board’s Leading Index was also lower, but better than the estimate. Existing Home Sales plunged but hit the forecast.

At 14:34 GMT, June E-mini NASDAQ-100 Index futures are trading 9412.00, down 82.00 or -1.05%.

Earlier in the session, Facebook rose 1.8% and reached a fresh record high. Amazon also hit an all-time high before falling from that level.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session. A trade through 9510.75 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 8847.00.

The minor trend is also up. A trade through 9273.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 8847.00 to 9510.75. Its 50% level at 9178.75 is the next downside target.

The short-term range is 8556.25 to 9510.75. Its retracement zone at 9033.50 to 8920.75 is the second downside target zone.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 9412.00, the direction of the June E-mini NASDAQ-100 Index the rest of the session on Thursday is likely to be determined by trader reaction to yesterday’s close at 9485.50.

Bearish Scenario

A sustained move under 9485.50 will indicate the presence of sellers. This will put the index in a position to form a potentially bearish closing price reversal top. This won’t change the trend to down, but it could trigger the start of a two to three day correction.

The first downside target is the minor bottom at 9273.00. Taking out this level will shift momentum to the downside with the next target the minor 50% level at 9178.75.

Bullish Scenario

A sustained move over 9485.00 will signal the presence of buyers. Taking out today’s intraday high at 9510.75 will signal a resumption of the uptrend with the February 20 main top at 9780.50 the next major upside target.