E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 9, 2016 Forecast

December E-mini NASDAQ-100 Index futures are called slightly higher shortly before the cash market open. The current rally is being driven by post-election euphoria and a surprise monetary policy announcement from the European Central Bank (ECB).

The main trend is up according to the daily swing chart. The new swing bottom is 4701.50. A trade through 4897.75 will signal a resumption of the uptrend. This is followed by 4919.50.

Based on the pre-market trade at 4869.00, the direction of the index the rest of the session is likely to be determined by trader reaction to the downtrending angle at 4865.75. A sustained move over this angle will indicate the presence of buyers. This could create the upside momentum needed to test the next downtrending angle at 4881.75. This is the last potential resistance angle before the 4897.75 main top.

Crossing to the weak side of the uptrending angle at 4865.75 will signal the presence of sellers. This could trigger a break into the steep uptrending angle at 4829.50. Look out to the downside if this angle fails as support because the next potential support angle comes in at 4765.50.

Watch the price action and read the order flow at 4865.75 today. Trader reaction to this angle will tell us if the rally is getting stronger or if the bears are regaining control.