E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 14883.50 Sets Tone into Close with 15035.00 Target

December E-mini NASDAQ-100 Index futures jumped on Thursday in a broad-based rally led by heavyweight technology firms. The catalyst behind the rally is a truce in the debt-ceiling standoff in the U.S. Congress that relieved concerns of a possible government debt default this month.

The U.S. Senate took a step toward passing a $480 billion increase in Treasury Department borrowing authority, which would put off another partisan showdown until December.

At 18:15 GMT, December E-mini NASDAQ-100 Index futures are trading 14949.50, up 190.50 or +1.29%.

In other news, data showed the number of Americans filing new claims for jobless benefits dropped last week by the most in three months, suggesting the labor market recovery was regaining momentum as the latest wave of COVID-19 infections began to subside.

The closely watched monthly U.S. jobs report is due on Friday.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

A trade through 15399.25 will change the main trend to up. A move through 14367.75 will signal a resumption of the downtrend.

The minor trend is up. The minor trend changed to up early Friday when buyers took out the last minor top at 14835.00. This move shifted momentum to the upside.

The minor range is 15399.25 to 14367.75. Late in the session, the index is trading on the strong side of its pivot at 14883.50, making it support.

The short-term range is 15702.25 to 14367.75. Its retracement zone at 15035.00 to 15192.50 is the primary upside target and the last potential resistance before the change in trend. Since the main trend is down, look for sellers on the first test of this area.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index into the close on Thursday will likely be determined by trader reaction to 14883.50.

Bullish Scenario

A sustained move over 14883.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a late session surge into 15035.00. Watch for sellers on the first test.

Overcoming 15035.00 will indicate the buying is getting stronger. This is a potential trigger point for an acceleration into 15192.50.

Bearish Scenario

A sustained move under 14883.50 will signal the presence of sellers. If this move generates enough downside momentum then look for a pullback into a minor pivot at 14684.50.

Aggressive counter-trend traders could come in on the first test of 14684.50. They are going to try to form a potentially bullish secondary higher bottom. If this level fails as support, the selling pressure could intensify with 14367.75 to 14308.50 the next likely target.