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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 11, 2016 Forecast

By:
James Hyerczyk
Updated: Feb 11, 2016, 18:09 UTC

March E-mini NASDAQ-100 Index futures are called sharply lower. The index is following the Asian and European markets lower. The direction of the market

Daily March E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are called sharply lower. The index is following the Asian and European markets lower. The direction of the market today will be determined by whether U.S. investors decide to chase the market lower, or if they see bargains and begin to buy because of the relatively cheap prices.

During the pre-market session, sellers took out the previous low at 3883.00. This signaled a resumption of the downtrend. The market fell to 3862.75 before buyers stopped the slide and drove the market back above the previous bottom. This suggests that some short-sellers are trapped between 3883.00 and 3862.50. If these short-sellers are forced to cover then we could see a strong intraday rally into perhaps the day’s mid-point at 3917.00.

Daily March E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Overcoming 3917.00 will indicate that the buying is getting stronger with the next target today’s high at 3971.75. This is followed by the steep downtrending angle at 4181.25.

If the selling resumes and is strong enough to take out 3862.25 then we could see an acceleration to the downside with a steep downtrending angle at 3797.25 the next likely target.

Crossing to the weak side of the angle at 3797.25 will put the index in an extremely weak position with the next major target coming in at 3651.75. This is the October 16, 2014 main bottom.

Traders are going to have to decide whether to sell weakness or an intraday retracement. This could create choppy, two-sided trading action early in the session.

Today is also the eighth day down from the last swing top so we are technically in the window of time for a potentially bullish closing price reversal bottom. This is a warning to those who want to sell short and go home.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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