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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Selling Stalled After Hitting Limit Down

June E-mini NASDAQ-100 Index futures gapped lower Sunday night as investors expressed disappointment in Washington’s ability to reach an agreement on economic stimulus and a rescue plan to fight the negative economic impact of the coronavirus. Earlier in the session, the index hit “limit down”, falling 5%.

Sellers hit the market from opening after a fiscal stimulus bill failed a key procedural Senate vote Sunday as Democrats warned the measure did not do enough to help workers and too much to bail out companies. House Speaker Nancy Pelosi believed, “From my standpoint, we’re apart.” However, Senate Minority Leader Chuck Schumer, D-NY sounded more optimistic, stating that disagreements over the bill could be overcome in the next 24 hours.

At 04:49 GMT, June E-mini NASDAQ-100 Index futures are trading 6755.25, down 213.75 or -3.07%. This is up from a low of 6628.75.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed on the opening when sellers took out the last swing bottom at 6810.00. The new main top is 7629.00. A trade through this level will change the main trend to up.

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Earlier today, a gap was formed on the weekly chart at 6810.00 to 6808.00, and on the daily chart at 6891.00 to 6808.00.

Daily Technical Forecast

The downside pressure is likely to continue as long as the upside gaps remain intact.

Also guiding the market lower are a pair of steep downtrending Gann angles at 6964.50 and 7214.75. They have been providing resistance and guidance for 22 and 14 trading sessions respectively.

Filling the price gaps will be the first sign of buyers. Overcoming the first downtrending Gann angle at 6964.50 will indicate the buying is getting stronger, while taking out 7214.75 could lead to a spike higher if shorts are forced to cover.

Taking out 7629.00 will change the main trend to up for the first time in weeks.

This article was originally posted on FX Empire

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