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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 18, 2017 Forecast

By:
James Hyerczyk
Updated: Dec 18, 2017, 14:32 UTC

Based on the early trade, the direction of the index the rest of the session will be determined by trader reaction to the steep angle at 6538.00.

E-mini NASDAQ-100 Index

Optimism over tax reform is helping to drive March E-mini NASDAQ-100 Index futures sharply higher on Monday. Earlier in the session, speculators drove the index to a new record high.

The session begins with the index up 9 days from its last swing bottom. This puts it in the window of time for a closing price reversal top. There is no resistance, but a lower close today will indicate the selling is greater than the buying at current price levels. The key support level to watch today is Friday’s close at 6498.50.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

Based on the early trade, the direction of the index the rest of the session will be determined by trader reaction to the steep angle at 6538.00.

Overtaking 6538.00 and sustaining the rally will put the NASDAQ-100 Index in an extremely bullish position.

The inability to overcome 6538.00 will not be a bearish sign, but it could be an indication that the buying may be slowing, or the selling may be increasing.

The first support is Friday’s close at 6498.50. A close under this level could lead to the start of a 2 to 3 day correction. The daily chart indicates the index is well above the major support at 6394.00 so there is plenty of room to the downside should the tax reform trade become a “buy the rumor, sell the fact” situation.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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