E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Bullish News Will Fuel Rally to 11920.25 – 11997.75

James Hyerczyk
Published: Oct 21, 2020, 05:03 UTC

The direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 11761.75 and 11550.50.

NASDAQ-100, S&P 500

In this article:

December E-mini NASDAQ-100 Index futures rose on Tuesday after White House Chief of Staff Mark Meadows said that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made “good progress” on stimulus talks, before adding that they “still have a ways to go” before an agreement is reached.

On Tuesday, December E-mini NASDAQ-100 Index futures settled at 11660.75, up 10.50 or +0.09%.

Following Pelosi and Mnuchin’s meeting on Tuesday, Meadows told CNBC’s “Closing Bell” that the two will talk again on Wednesday, and that he hopes to see “some kind of agreement before the weekend.”

In other technology-stock related news, a slew of companies reported quarterly earnings after the bell on Tuesday, most notably Netflix. Shares of the streaming giant slipped 5.7% after the company missed earnings estimates, and reported fewer-than-expected subscriber additions. On the other hand, shares of Snap jumped 24% after the company reported a surprise earnings beat.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 11197.50, while a move through 12249.00 will reaffirm the uptrend.

The minor trend is down. This is controlling the downside momentum. A move through 12022.00 will change the minor trend to up, while a trade through 11591.25 will indicate the selling pressure is getting stronger.

The intermediate range is 12444.75 to 10656.50. The index is currently trading inside its retracement zone at 11550.50 to 11761.75. Trader reaction to this zone will likely determine the near-term direction of the index.

The new minor range is 12249.00 to 11591.25. Its retracement zone at 11920.25 to 11997.75 is the primary upside target.

The short-term range is 10656.50 to 12249.00. Its retracement zone at 11452.75 to 11264.75 is another support area.

Early Outlook

Based on Tuesday’s close, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the Fibonacci level at 11761.75 and the 50% level at 11550.50.

Bullish Scenario

A sustained move over 11761.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the minor retracement zone at 11920.25 to 11997.75.

Bearish Scenario

A sustained move under 11761.75 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into 11591.25 to 11550.50.

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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