E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 28, 2016 Forecast

December E-mini NASDAQ-100 Index futures are called better based on the pre-market trade. The market is rebounding from earlier weakness in reaction to a better-than-expected Advance GDP report. Traders also responded to a slew of earnings reports.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since October 25. A trade through 4788.50 will indicate that sellers are still in control with a main bottom at 4754.50 the next target.

The main range is 4754.50 to 4919.50. Its retracement zone is 4837.00 to 4817.50. The market opened the session under this zone, putting it in an early weak position. Shortly before the opening, it is testing the lower Fibonacci level at 4817.50.

If a short-term range develops between 4919.50 and 4788.50 then its retracement zone at 4854.00 to 4869.50 will become the primary upside target.

Forecast

Based on the current price at 4815.75 and the earlier price action, the main Fibonacci level at 4817.50 will become determine the direction of the index today.

Crossing to the strong side of the Fib level at 4817.50 will indicate the presence of buyers. However, taking out the steep downtrending angle at 4823.50 will trigger an acceleration to the upside with the next three upside targets coming in at 4837.00, 4854.00 and 4869.50.

A sustained move under 4817.50 will signal the presence of sellers. The first downside target is an uptrending angle at 4798.50. This is followed closely by today’s intraday low at 4788.50, and a pair of uptrending angles at 4776.50 and 4765.50. The latter is the last potential support angle before a 50% level at 4763.25 and a main bottom at 4754.50.

Watch the price action and read the order flow at 4817.50 all session. Trader reaction to this level will tell us if the buyers have returned, of if the sellers are getting ready to press the market lower.