E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 17, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. Concerns over global economic weakness is primarily behind the selling pressure. This is a follow-through move related to Friday’s softer-than-expected economic data from China. Some of the selling pressure is related to position-squaring and general nervousness ahead of the Fed’s interest rate and monetary policy statement. Uncertainty over expected remarks from Fed Chair Powell on Wednesday is also contributing to the weakness.

At 1448 GMT, December E-mini NASDAQ-100 Index futures are trading 6517.75, down 81.75 or -1.24%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the previous main bottom at 6535.25.

The index is also trading on the weak side of a pair of Gann angle at 6585.50 and 6563.00. These angles are new resistance.

The next downside target is an uptrending Gann angle at 6517.50. This is the last potential support angle before the 6449.50 main bottom.

Daily Technical Forecast

Based on the current price at 6517.75, the direction of the December E-mini NASDAQ-100 Index futures contract the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 6517.50.

Bullish Scenario

Recapturing and sustaining a rally over 6517.50 will indicate the return of buyers. If this can generate enough upside momentum then look for buyers to make a run for a downtrending Gann angle at 6563.00.

Since the trend is down, look for sellers on the first test of 6563.00. Overtaking this angle could drive the index into an uptrending Gann angle at 6585.50. Crossing to the bullish side of this angle will indicate the buying is getting stronger. This could lead to a test of the downtrending Gann angle at 6680.00.

Bearish Scenario

A sustained move under 6517.50 will signal that the selling is getting stronger. If this move generates enough downside momentum then look for an eventual break into the main bottom at 6449.50. Taking out this level with conviction could trigger an acceleration to the downside with the next major target the February 8 bottom at 6385.25.