E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Dull Trade as US Holiday Drives Down Volume

Monday’s inside move suggests investor indecision and impending volatility. The extremely low volume helped contribute to the sideways price action.
James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures treaded water on Monday during the cash market session after posting a wicked two-sided swing in the pre-market. The rangebound trade was driven by below average volume due to the Columbus Day holiday in the United States. Although not an official bank holiday, some banks were closed, but more importantly, the Treasury market was shut down for the day.

At 19:50 GMT, December E-mini NASDAQ-100 Index futures are trading 7860.00, up 1.00 or +0.01%.

The index was trading higher early in the session as traders continued to respond to Friday’s announcement of “phase one” of a partial trade deal between the United States and China. However, the index reversed course and moved lower for the session after Bloomberg News reported that China wanted to continue to hold more talks before signing the deal. After the sell-off, the market returned to unchanged for the session before settling into an intraday range.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Friday when buyers took out the previous swing top at 7799.75.

A break back below 7799.75 will indicate weakness, but the trend won’t change to down unless 7583.25 is violated.

The short-term range is 8002.50 to 7474.25. Its retracement zone at 7783.00 to 7724.00 is support. Holding above this zone will help maintain the upside bias.

The major support zone comes in at 7624.50 to 7535.00.

Daily Technical Recap

On Monday, the December E-mini NASDAQ-100 Index found support on a downtrending Gann angle at 7826.50. This was slightly above the short-term Fibonacci level at 7783.00.

On the upside, the intraday high fell short of a resistance cluster created by a downtrending Gann angle at 7914.50, last week’s high at 7918.50 and an uptrending Gann angle at 7922.25.

Side Notes

Monday’s inside move suggests investor indecision and impending volatility. The extremely low volume helped contribute to the sideways price action.

If investors decide to shake off the news about China then look for the index to continue to claw towards the pair of tops at 7973.75 and 8002.50.

If investors determine there is risk to the partial trade deal then look for a near-term pullback into 7783.00, followed by 7724.00.

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