E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Bullish but Ripe for Closing Price Reversal Top

December E-mini NASDAQ-100 Index futures rose to a new record high on Wednesday after the U.S. Federal Reserve made its long-anticipated announcement to reduce the massive monthly stimulus it implemented at the start of the pandemic in March 2020.

After a shaky start, the tech-driven index climbed steadily into the green as the central bank said it will begin to scale back the bond buying later this month and reiterated that it would be in no rush to raise interest rates after finishing the taper next year.

On Wednesday, December E-mini NASDAQ-100 Index futures settled at 16130.50, up 169.25 or +1.06%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 16145.75 will signal a resumption of the uptrend. The main trend will change to down on a trade through 15273.75

On Thursday, the index will mark its ninth straight day since the last main bottom at 15273.75. This puts it inside the window of time for a potentially bearish closing price reversal top. This won’t change the main trend to down, but it could trigger a short-term correction.

The minor range is 15273.75 to 16145.75. Its 50% level at 15709.75 is the nearest support. This level will move up as the index moves higher.

Additional support levels come in at 15365.50, 15256.75 and 15047.00.

Short-Term Forecast

The direction of the December E-mini NASDAQ-100 Index early Thursday is likely to be determined by trader reaction to 16145.75. If this level is taken out then the direction the rest of the session will be determined by trader reaction to 15130.50.