E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis –

December E-mini NASDAQ-100 Index futures are surging late in the session on Monday, bouncing back from a midday setback that saw the index bend, but not break after posting strong gains shortly after the opening.

Analysts said the gains could be attributed to quarter-end rebalancing of investor portfolios as cyclical sectors including financials, industrials, materials and energy added more than 2% by midday trading.

At 19:12 GMT, December E-mini NASDAQ-100 Index futures were trading 11329.50, up 193.00 or 1.73%. This is just off the high of the session at 11365.50.

Monday’s rally has put the E-mini NASDAQ-100 Index on course for their biggest two-quarter gains since 2000 and 2009, respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier in the session when buyers took out the last main top at 11222.00. A trade through 11222.00 will change the main trend to down.

The main support is a retracement zone bounded by 10917.50 to 10557.25. This zone stopped the selling at 10660.25 and 10656.50 on September 24 and September 21 respectively.

The minor range is 11539.00 to 10656.50. Besides changing the main trend to up, the index also crossed to the strong side of the minor retracement zone at 11199.50 to 11094.75.

The short-term range is 12444.75 to 10656.50. The next objective is the retracement zone at 11550.75 to 11761.75.

Short-Term Outlook

Upside should continue to build over the swing top at 11222.00 with the retracement zone at 11199.50 to 11094.75 providing solid near-term support.

The next swing top target is 11539.00. This is followed closely by the retracement zone at 11550.75 to 11761.75. This is an important retracement zone because it represents 50% to 61.8% of the entire break from 12444.75 to 10656.50 so we expect to see sellers come in on a test of this area.

Sellers are going to try to establish a secondary lower top. If successful, then we could see a retest of the main bottom at 10656.50 or even more downside pressure. If the bears are unsuccessful in stopping a rally at 11761.75 then look for an acceleration to the upside with 12444.75 the next major upside target.