E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Be Setting Up Closing Price Reversal Top

December E-mini NASDAQ-100 Index futures are trading lower after giving back earlier gains. Traders could be reacting to the U.K. regulator’s issuance of an allergy warning for Pfizer vaccine.

According to CNBC, the Pfizer vaccine rollout continues for a second day in the U.K., but a health regulator has warned that people with a history of severe allergic reactions should skip the shot for now.

At 14:28 GMT, December E-mini NASDAQ-100 Index futures are trading 12631.00, down 6.50 or -0.05%. This is down from an intraday high of 12675.00.

Traders could also be betting that a successful vaccine release could dampen demand for tech-related stocks tied to the stay-at-home industry. These include Amazon and Zoom.

As investors exit the tech stocks they are likely to buy the shares of cyclical companies, or companies that will perform well when the economy reopens in full force. These include American Airlines Group Inc and United Airlines Holdings Inc. They jumped 3.9% and 1.5% respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday high at 12675.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 10942.25.

The minor trend is also up. A trade through 12086.00 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 12086.00 to 12675.00. Its 50% level at 12380.50 is the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 12637.50.

Bullish Scenario

A sustained move over 12637.50 will indicate the presence of buyers. Overtaking 12675.00 will signal a resumption of the uptrend. This could trigger an acceleration to the upside if there is enough buying behind the move.

Bearish Scenario

A sustained move under 12637.50 will signal the presence of sellers. This will also put the index in a position to form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with the first target 12380.50.

For a look at all of today’s economic events, check out our economic calendar.