E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Earnings, Low Inflation Opens Door to Further Rally

December E-mini NASDAQ-100 Index futures are trading higher at the mid-session. Today’s strength is being driven by earnings and low inflation.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the current rally is 14 sessions long which puts the index inside the window of time to post a potentially bearish closing price reversal top.

Earlier in the session, the index reached a low of 6068.50. This was slightly above the steep uptrending Gann angle at 6066.00.

This angle, moving up at a rate of 16 points per day, has been guiding the index higher since the September 25 main bottom at 5842.00. Clearly, the rally depends on this angle to extend the move.

We’re looking for the rally to continue into the close today, but would start to get a little nervous late in the day if sellers drive the market into yesterday’s close at 6074.75.

A close below the steep uptrending angle at 6066.00 will also be a sign that the selling is greater than the buying. The daily chart indicates there is plenty of room to the downside if this angle fails.

Look for a bullish tone into the close based on current conditions. Be prepared for a weak close if 6074.75 fails as support as well as 6066.00.