E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 20, 2017 Forecast

March E-mini NASDAQ-100 Index futures are expected to open higher based on the early trade. The market is trading inside yesterday’s range, suggesting investor indecision and impending volatility.

On Tuesday, the index formed a potentially bearish closing price reversal top, however, there has been no confirmation so the trend and momentum are still up. A trade through 6479.75 will confirm the chart pattern and could trigger the start of a 2 to 3 day correction.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6545.75 will signal a resumption of the uptrend.

The main range is 6250.00 to 6545.75. Its retracement zone at 6398.00 to 6363.00 is the primary downside target.

Daily Technical Forecast

With the index trading inside yesterday’s range, the direction of the market today is likely to be determined by trader reaction to yesterday’s high and yesterday’s low.

A trade through 6545.75 will negate the closing price reversal top and signal a resumption of the uptrend. This could trigger an acceleration to the upside if the move is accompanied by rising volume.

Taking out 6479.75 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The first target today is an uptrending Gann angle at 6426.00. The primary downside target is the retracement zone at 6398.00 to 6363.00.