E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis Forecast – Early Buying Tentative at Current Levels
December E-mini NASDAQ-100 Index futures are edging lower overnight, despite recent strength that drove it to a record high the previous session. This tells us that there is little interest in the U.S. markets from Asia and Europe and that U.S. investors are going to have to provide the support when the cash market opens at 13:30 GMT.
At 06:54 GMT, December E-mini NASDAQ-100 Index futures are trading 12440.25, down 12.00 or -0.10%.
On Tuesday, the index closed 1.3% higher, led by strong gains in all mega-cap tech stocks. The biggest support came from shares of Apple, which rose 3%.
November finished with the index posting an 11.8% return, its best performance since April. The market was boosted by positive vaccine news from several pharmaceutical companies. However, despite the positive vaccine outlook, Federal Reserve Chairman Jerome Powell called the economic outlook “extraordinarily uncertain” on Tuesday when he and Treasury Secretary Steven Mnuchin spoke before Congress this week as part of mandated updates on CARES Act funding.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 12512.25 will signal a resumption of the uptrend. The main trend will change to down on a trade through the nearest main bottom at 10942.25.
The minor range is also up. A trade through 12086.00 will change the minor trend to down. This will shift momentum to the downside.
The first minor range is 12086.00 to 12512.25. Its 50% level at 12299.00 is potential support.
The second minor range is 11804.50 to 12512.25. Its 50% level at 12158.25 is another potential support level.
Daily Swing Chart Technical Forecast
If the upside momentum continues then look for buyers to take out 12512.25. Strong buying volume could trigger an acceleration to the upside. Weak buying could still support a rally, but the move will be slower.
A shift in intraday momentum to the downside could lead to a test of 12299.00. Since the main trend is up, buyers could come in on a test of this level. If it fails then look for the selling to possibly extend into the next minor pivot at 12158.25, this is followed by the minor bottom at 12086.00.
If you’re a defensive traders then you should be watching for a move through 12512.25 then a lower close. This chart pattern is also known as a closing price reversal top. It won’t change the trend, but if confirmed, it could trigger the start of a 2 to 3 day correction.
If we don’t get a reversal top then the minor bottom at 12086.00 will take out greater importance. Taking out this level won’t change the main trend to down either, but it will shift momentum to the downside.
For a look at all of today’s economic events, check out our economic calendar.