E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 12, 2016 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. Yesterday, the index broke sharply lower during the pre-market session, but may a strong recovery, almost posting a bullish closing price reversal bottom. This suggests that U.S. traders are steering the market higher.

The main trend is down according to the daily swing chart. A trade through 3862.25 will signal a resumption of the downtrend.

The short-term range is 4309.25 to 3862.25. Its retracement zone at 4085.75 to 4138.50 is the primary upside target.

Based on the current price at 3991.25, the tone of the market the rest of the session is likely to be determined by trader reaction to the steep downtrending angle at 4021.25.

A sustained move over 4021.25 could trigger an acceleration to the upside since the next target doesn’t come in until 4085.75.

The inability to overcome 4021.25 will indicate the presence of sellers. The first downside target is a steep uptrending angle at 3926.25. This is followed by angles at 3894.25, 3878.25 and 3870.25. These aren’t very strong angles so the market may just go right through them on the way to the main bottom at 3862.25.

Taking out 3862.25 will signal a resumption of the downtrend with the October 16, 2014 main bottom at 3651.75 still the best target.

Watch the price action and read the order flow at 4021.25 today. Trader reaction to this angle will tell us if the bulls or the bears are in control.

Monday is a U.S. holiday and China is coming back online after a week-long holiday so traders should start preparing for excessive volatility. This may have an effect on today price action.