E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 07, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly after the opening. The price action suggests that investors feel the progress towards tax reform is more important to the long-term trend than concerns over a possible government shutdown on Saturday which is a short-term issue.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower for about seven days. A trade through 6247.00 will change the main trend to down. A move through 6446.50 will signal a resumption of the uptrend.

Buyers came in strong at 6250.00 on Tuesday to defend the main bottom at 6247.00 and prevent a change in trend to down.

The main range is 6024.00 to 6446.50. Its retracement zone at 6235.25 to 6185.50 is the primary downside target. We could see a technical bounce on a test of this zone since it represents a value area.

The short-term range is 6446.50 to 6250.00. Its retracement zone at 6348.25 to 6371.50 is the first upside target. Aggressive counter-trend sellers may come in on a test of this zone in an effort to form a secondary lower top. Buyers are going to try to drive the index through this zone in an effort to make 6250.00 a new main bottom.

Daily Technical Forecast

Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the downtrending Gann angle at 6334.50.

A sustained move over 6334.50 will signal the presence of buyers. This could lead to a labored rally with potential targets at 6348.25, 6371.50 and 6390.50. The index will open up to the upside over 6390.50 with 6418.50 the next target. This is the last potential resistance angle before the 6446.50 main top.

A sustained move under 6334.50 will indicate the presence of sellers. If this move generates enough downside momentum then look for a drive into a major uptrending Gann angle at 6264.00. This angle stopped the sellers on Tuesday and Wednesday. If it fails as support then look for the move to extend into the 50% level at 6235.25.