E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 1, 2015 Forecast

December E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index is currently straddling a resistance angle, putting it in a position to challenge the closing price reversal top at 4706.75 and the November high at 4729.75.

Based on Monday’s close at 4668.75 and the early price action, the direction of the market today is likely to be determined by trader reaction to the short-term pivot at 4663.50.

A sustained move over 4663.50 will indicate the presence of buyers. This level held earlier, creating enough upside momentum to test the downtrending angle at 4693.75.

Overtaking 4693.75 will put the market in a position to challenge the closing price reversal top at 4706.75. This is followed by another downtrending angle at 4711.75. This is the last potential resistance angle before the 4729.75 main top.

Based on the current price at 4785.75, the inability to overcome the angle at 4693.75 will indicate that sellers are coming in to defend the tops. This could lead to a retest of the pivot at 4663.50.

A sustained move under 4663.50 will indicate the presence of sellers. This could lead to a fast break into the downtrending angle at 4657.75. This angle is a trigger point for an acceleration to the downside with the next target an uptrending angle at 4615.00.

Early in the session, watch the price action and read the order flow at 4693.75. Trader reaction to this angle will tell us whether the bulls or the bears are in control.