E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 22, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly lower shortly ahead of the cash market opening. The index is posting an inside chart pattern which suggests investor indecision and impending volatility. Investors are essentially waiting for the release of the Fed minutes later in the session.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5353.75 will signal a resumption of the uptrend. The index is still in the window of time for a closing price reversal top.

A trade through 5286.75 will turn the minor trend to down.

The main range is 5083.25 to 5353.75. If the index starts to sell-off then 5218.50 will become the primary downside target.

Forecast

Based on the current price at 5340.25, the direction of the index is likely to be determined by trader reaction to yesterday’s high at 5353.75 and the uptrending angle at 5323.25.

Taking out 5353.75 will signal the presence of buyers. However, they have to come in and defend this old top in order to produce a strong, momentum driven rally. A break back under this price will indicate the selling is greater than the buying at current price levels. A close under this price will form a reversal top.

The major support is an uptrending angle at 5323.25. This angle, moving up a rate of 16 points per day, is controlling the direction of the market. We could see the start of an acceleration to the downside if it fails to hold as support.

The main range is 5083.25 to 5353.75. If there is a sell-off then its retracement zone at 5218.50 to 5186.50 will become the primary downside target. An uptrending angle at 5303.25 passes through this zone, making it a valid target also.

Simply put, look for a strong rally on a sustained move over 5353.75 and a downside bias to develop on a sustained move under 5323.25.