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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 29, 2016 Forecast

By:
James Hyerczyk

December E-mini NASDAQ-100 Index futures are called lower shortly before the cash market opening. The index tried to rally earlier in the session, driven

e-mini-nasdaq-100-index

December E-mini NASDAQ-100 Index futures are called lower shortly before the cash market opening. The index tried to rally earlier in the session, driven by yesterday’s momentum, but the move failed to attract enough buyers to continue.

The current price action suggests that a secondary lower top may be forming. This would be a bearish signal. It will be confirmed on a trade through 4800.75.

TECHNICAL ANALYSIS

The main trend is up according to the daily swing chart. A trade through 4892.25 will signal a resumption of the uptrend. The main trend will turn down on a trade through 4800.75

The short-term range is 4892.25 to 4800.75. Its 50% or pivot is 4846.50. This price is controlling the short-term direction of the market. The index will maintain its current upside bias as long as this level holds as support.

The main range is 4625.25 to 4892.25. If there is a sell-off and a change in trend to down then the primary downside target will be the retracement zone at 4758.75 to 4727.25.

FORECAST

daily-december-e-mini-nasdaq-100-index
Daily December E-mini NASDAQ-100 Index

BASED ON THE CURRENT PRICE AT 4860.25, THE DIRECTION OF THE MARKET TODAY IS LIKELY TO BE DETERMINED BY TRADER REACTION TO A PAIR OF ANGLES AT 4872.25 AND 4864.75.

A SUSTAINED MOVE OVER 4872.25 WILL INDICATE THE PRESENCE OF BUYERS. THIS COULD DRIVE THE INDEX INTO THE DOWNTRENDING ANGLE AT 4882.25. THIS IS THE LAST POTENTIAL RESISTANCE ANGLE BEFORE THE 4892.25 MAIN TOP.

A SUSTAINED MOVE UNDER 4864.75 WILL SIGNAL THE PRESENCE OF SELLERS. THIS COULD TRIGGER AN ACCELERATION TO THE DOWNSIDE INTO THE SHORT-TERM PIVOT AT 4846.50.

IF THE PIVOT FAILS AS SUPPORT THEN LOOK FOR A FURTHER BREAK INTO A PAIR OF UPTRENDING ANGLES AT 4833.25 AND 4832.75. THIS IS A MAJOR LONG-TERM SUPPORT AREA. IF IT FAILS AS SUPPORT THEN LOOK OUT TO THE DOWNSIDE.

TAKING OUT 4832.75 WITH CONVICTION COULD TRIGGER A STEEP BREAK INTO THE LAST MAIN BOTTOM AT 4800.75. TAKING OUT THIS BOTTOM WILL TURN THE MAIN TREND TO DOWN WITH PLENTY OF ROOM TO THE DOWNSIDE BECAUSE THE NEXT MAJOR TARGET IS 4758.75.

LOOK FOR A BULLISH TONE TO DEVELOP ON A SUSTAINED MOVE OVER 4872.25 AND A BEARISH BIAS TO DEVELOP UNDER 4864.75.

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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