E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 9, 2016 Forecast

March E-mini NASDAQ-100 Index futures are called slightly lower based on the early trade. The main trend is down, but the bounce off of yesterday’s low and today’s price action suggests a shift in momentum may be taking place.

Based on yesterday’s close at 3964.25 and today’s price action, the direction of the market today is likely to be determined by trader reaction to the steep downtrending angle at 3925.25. Currently, the index is trading on the strong side of this angle.

A sustained move over 3925.25 will indicate that buyers are coming in to underpin the market. This move could eventually create some upside momentum. The daily chart indicates there is room to the upside to rally with the next major target coming in at 4117.25. However, this price can’t be touched until yesterday’s high at 4046.00 is taken out with conviction.

Crossing to the weak side of the steep downtrending angle at 3925.25 will put the index in an extremely bearish position. This could lead to a fast break into yesterday’s low at 3883.00. Taking this level out with conviction could lead to the start of a steep break with the next major target coming in at 3651.75. This is the October 16, 2014 main bottom.

Watch the price action and read the order flow at 3925.25. Trader reaction to this angle will tell us if the bulls are regaining strength, or if the bears are strengthening their grip on the market.