E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 22, 2016 Forecast

March E-mini NASDAQ-100 Index futures are called flat shortly before the cash market opening. Volume is expected to remain below average which is holding down the price action. However, the index is still vulnerable to a volatility spike or two.

Traders showed little reaction to the fresh economic data. Weekly initial jobless claims came in well above the 256K estimate at 275K. Third-quarter U.S. GDP came in at 3.5 percent, above the expected 3.2 percent. Durable goods orders for November fell 4.6 percent last month, however, this was below expectations.

Technical Analysis

The main trend is up according to the daily swing chart. The index is far from changing the main trend to down, but the market is still in the window of time for a potentially bearish closing price reversal top. Momentum is sideways, but will turn down on a trade through 4904.25. A trade through 4966.25 will signal a resumption of the uptrend.

The short-term range is 4904.25 to 4966.25. Its 50% level or pivot at 4935.25 is controlling the short-term direction of the market.

The main range is 4700.50 to 4966.25. If there is a correction over the near-term then look for the selling to extend into 4833.25 to 4802.00.

Forecast

Based on the current price at 4935.25 and the early price action, the direction of the NASDAQ-100 Index today is likely to be determined by trader reaction to the pivot at 4935.25.

A sustained move over 4935.25 will indicate the presence of buyers. This could create enough upside momentum to challenge the high at 4966.25. This is a potential trigger point for an upside breakout.

A sustained move under 4935.25 will signal the presence of sellers. This could generate the momentum needed to test an uptrending angle at 4908.50 then the low at 4904.25. This low is the trigger point for an acceleration to the downside with 4833.25 the next likely target.

Watch the price action at 4935.25 today and be careful selling weakness and buying strength because of the well-below average volume.