E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 21, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading flat to lower shortly before the cash market session. The price action is being influenced by concerns over the elections in France, worries about the direction of U.S. interest rates and a spike in crude oil prices. Technically, some conventional traders are concerned about overbought conditions.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5345.50 will signal a resumption of the uptrend. We are still in the window of time for a closing price reversal top so investors will have to watch for a higher-high, lower-close chart pattern. This pattern may not indicate the trend is getting ready to turn lower, but it will indicate that the selling is greater than the buying at current price levels and this could lead to a shift in momentum at any time.

A trade through 5286.75 will turn the minor trend to down. Like the reversal top, this chart pattern will indicate the selling is greater than the buying at current price levels.

Forecast

Based on the current price at 5336.00 and the earlier price action, the direction of the market today will be determined on the upside by trader reaction to yesterday’s high at 5345.50. Buyers can either take it out and sustain the rally, sellers may defend it and stop the market from continuing the move, or profit-takers and short-sellers could produce a little of both and form a closing price reversal top.

The key Gann angle comes in at 5323.25. This angle, moving up at a pace of 16 points per day, has been guiding the market higher since the 5083.25 main bottom on January 13.

This angle is controlling the direction of the market. A sustained move over 5323.25 will indicate the presence of buyers. The upside momentum will be controlled by how buyers handle 5345.50.

If 5323.25 fails as support and big selling volume comes in then look for the start of a correction. The first target is the minor bottom at 5286.75. This may be the trigger point for the start of an acceleration into the main 50% level at 5214.25.