E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 21, 2018 Forecast

March E-mini NASDAQ-100 Index futures are trading higher at the mid-session. After establishing today’s intraday low during the pre-market session, the market has been trending higher since the cash market opening. The upside momentum has been strong enough to take out Monday’s closing price reversal top at 6859.75.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the minor trend is up and momentum is trending to the upside. The next major upside target is the January 29 main top at 7047.25.

A trade through 6723.75 will change the minor trend to down.

The main range is 7047.25 to 6164.00. Its retracement zone is 6709.75 to 6605.50. This zone is controlling the near-term direction of the index. Holding above this zone is helping to give the index an upside bias.

Daily Technical Forecast

Based on the current price at 6853.00 (1645 GMT), the direction of the NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 6791.25.

A sustained move over 6791.25 will indicate the presence of buyers. This could create the upside momentum needed to challenge the next downtrending Gann angle at 6919.25, followed closely by another downtrending Gann angle at 6983.25. This is the last potential downtrending Gann angle before the 7047.25 main top.

A sustained move under 6791.25 will signal the presence of sellers. This could trigger a move into the Fibonacci level at 6709.75. Taking out this level could drive the index into an uptrending Gann angle at 6612.00, followed closely by a 50% level at 6605.50.

The trigger point for an acceleration to the downside is 6605.50. The daily chart indicates there is plenty of room to the downside with the next major target angle coming in at 6388.00.

Look for volatility and a possible two-sided trade at 1900 GMT when the Fed releases its minutes. A hawkish Fed that signals three or more rate hikes this year could trigger a sell-off. Any surprises regarding higher rates, rising inflation or Fed concerns about market volatility could be bearish.

If the Fed minutes offer nothing new to investors then stocks could rally.