E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 23, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly higher shortly before the cash market opening. The market is still being driven by momentum so we’ll continue to focus on the chart pattern instead of resistance since it can’t be identified. In other words, the rally will just stop when it runs out of buyers instead of reacting to a particular price level.

Technical Analysis

The main trend is up according to the daily swing chart. However, we’re still in the window of time for a potentially bearish closing price reversal top. Now that we’ve made the higher-high, we’ll have to watch yesterday’s close at 5351.00 all session since a break below it will put the index in a position to post the reversal top at the end of the day.

A trade below 5286.75 will change the minor trend to down.

If a correction does begin then 5220.00 to 5187.75 will become the primary downside target.

Forecast

Based on the current price at 5354.50, the direction of the index today will be determined by trader reaction to yesterday’s close at 5351.00.

A sustained move over 5351.00 will signal the presence of buyers.

A sustained move under 5351.00 will indicate the presence of sellers. This could drive the market into an uptrending angle at 5339.25. If this angle begins to fail as support then start preparing for the start of a correction. Watch for increasing selling volume. Since the uptrend has been so strong, I think we’re going to need well-above average to sustain a break under this angle.

Since the market is momentum driven and there is no true resistance the best level to watch for guidance today is yesterday’s close at 5351.00.

Look for an upside bias on a sustained move over 5351.00 and a downside bias to develop on a sustained move under the angle at 5339.25.