E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Enough Sellers Show Up to Produce Closing Price Reversal Top

The next move in the March E-mini NASDAQ-100 Index will be determined by whether the major players decide to continue to chase the market higher, or decide to play for a pullback into a value area.
James Hyerczyk
E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures finished lower on Friday as investors booked profits ahead of the weekend. In the cash market, the loss snapped an 11-day winning streak in the broader-based NASDAQ Composite. Earlier in the session, the technology-driven index hit a new all-time high. Trading volumes were light throughout the end of the holiday shortened week.

On Friday, March E-mini NASDAQ-100 Index futures settled at 8783.25, down 21.00 or -0.24%.

Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The main trend was reaffirmed on Friday when buyers took out Thursday’s high. The main trend will change to down on a trade through the last main bottom at 8189.25.

A change in the main trend is highly unlikely, but Friday’s closing price reversal top at 8843.50 suggests the selling may be greater than the buying at current price levels.

A trade through 8769.00 on Monday will confirm the potentially bearish chart pattern. This could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 8707.00 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 8707.00 to 8843.50. Its 50% level or pivot comes in at 8775.25.

The second minor range is 8319.50 to 8843.50. Its 50% level target is 8581.50.

Daily Gann Angle Technical Analysis

Guiding the index higher since December 3 has been a steep uptrending Gann angle, moving at a pace of 32 points per day since the 8189.25 main bottom. This Gann angle came in at 8733.25 on Friday.

A sustained move under 8733.25 will be further confirmation the momentum is shifting to the downside. The distance between the next Gann angle indicates there is plenty of room to the downside with the next two targets coming in at 8461.25 and 8435.50.

Short-Term Outlook

The next move in the March E-mini NASDAQ-100 Index will be determined by whether the major players decide to continue to chase the market higher, or decide to play for a pullback into a value area.

Let’s assume that the institutions and mutual funds took off for the Christmas and New Year’s holidays on Friday, December 20. The index settled at 8710.75 that day. On Friday, it closed at 8783.25.

Do you really think they are going to start buying at 8783.25? I don’t think so. I think they are going to want some value. Therefore, I’m expecting a pullback.

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