E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Has to Hold 8035.75 to Sustain Upside Momentum

December E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening after touching a new all-time high earlier in the session. The market is being underpinned by the news that the U.S. and China are “close to finalizing” some parts of phase one of their partial trade agreement. There is also breaking news that is providing support. According to reports, the European Union has agreed to give the UK a Brexit extension until January 31.

At 09:49 GMT, December E-mini NASDAQ-100 Index futures are trading 8058.00, up 22.25 or +0.28%.

Investors are also preparing for the busiest week of earnings season. After the bell today, Alphabet, the parent of Google, is scheduled to report their latest quarterly figures.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high and the previous all-time high at 8071.75.

The main trend is safe for now, but due to the prolonged move up in terms of price and time, long investors should watch for a closing price reversal top that could signal the selling is greater than the buying at current price levels.

The minor trend is also up. It will change to down on a move through 7810.25. This will shift momentum to the downside.

Daily Technical Forecast

Based on the early price action and the prolonged time and price rally, the direction of the December E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to Friday’s close at 8035.75. The logic being if we’re in a momentum driven market then we should turn lower for the session, but most of all, we shouldn’t close lower.

Bullish Scenario

A sustained move over 8035.75 will indicate the presence of buyers. Overtaking today’s intraday high at 8075.00 will indicate the buying is getting stronger. Since we’re at all-time highs, there is no resistance. There’s only the chart pattern to watch. I say this because some analysts will find resistance and it doesn’t make sense to me.

Bearish Scenario

A sustained move under 8035.75 will signal the presence of sellers. It doesn’t have to be short-sellers or top-pickers. It could be traders taking profits. If there is enough of them to turn the market lower for the session then look for the break to possible extend into the uptrending Gann angle at 8018.25. Buyers could come in on the first test of this angle.

If 8018.25 fails then this will indicate the selling pressure is getting stronger. A lower close today could trigger the start of a 2 to 3 day correction.