E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 14, 2016 Forecast

March E-mini NASDAQ-100 Index futures are trading flat ahead of the Fed’s interest rate announcement. The central bank will also issue a monetary policy statement. Fed Chair Janet Yellen has also scheduled a news conference and the Federal Open Market Committee members present there “dot plots” for future rate hikes. All of these factors could contribute to excessive volatility after 1900 GMT.

Technical Analysis

The main trend is up according to the daily swing chart. The index made a new contract high on Tuesday, but is still in the window of time to produce a potentially bearish closing price reversal top.

The short-term range is 4700.50 to 4961.50. Its retracement zone at 4831.00 to 4800.25 is the primary downside target.

The main range is 4557.00 to 4961.50. Its retracement zone at 4736.75 to 4694.25 is the next downside target zone.

Forecast

Based on the current price at 4938.00, the direction of the index today is likely to be determined by trader reaction to the steep uptrending angle at 4924.50.

A sustained move over 4924.50 will signal the presence of buyers. The next target is yesterday’s high at 4961.50.

A sustained move under 4924.50 will indicate the presence of sellers. The daily chart is wide open to the downside under this steep angle with the next key area coming in at 4831.00, 4812.50 and 4800.25.

Watch the price action and read the order flow at 4924.50 today. Trader reaction to this angle will tell us if the buyers are still coming in to support the market, or if sellers are taking control.

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