E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Higher-Highs, Higher-Lows Needed to Sustain Rally

December E-mini NASDAQ-100 Index futures and the cash Composite Index eked out a small gain on Thursday after a report that Pfizer Inc had slashed the target for the rollout of its COVID-19 vaccine dampened the current bullish enthusiasm.

The indexes hit record highs during the session, but the rally stalled after the Wall Street Journal reported that Pfizer faced supply chain obstacles related to the vaccine, sending its shares lower.

At 21:56 GMT, December E-mini NASDAQ-100 Index futures

are trading 12488.25, up 34.00 or +0.27%. This is down from an all-time high at 12540.25.

Helping to underpin the technology-driven index were shares of Tesla, which was Wall Street’s most traded stock by value, with over $22 billion worth of shares exchanged, according to Refinitiv data. Tesla Inc surged after Goldman Sachs upgraded the stock to “buy” in the run-up to the electric car maker’s addition to the S&P 500.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Wednesday’s high. A trade through 10942.25 will change the main trend to down.

The minor trend 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 to 12540.25. Its 50% level at 12313.00 is potential support.

The second minor range is 11804.50 to 12540.25. Its 50 level at 12172.25 is another potential support level. This is followed by another 50% level at 12021.75.

Short-Term Outlook

There is no true resistance at current price levels (unless you count Thursday’s high at 12540.25) because we are in uncharted territory. The rally is also being driven by strong upside momentum. Therefore, we conclude that the rally will end when the momentum ends.

The best sign of a slowdown in momentum will be a closing price reversal top. This chart pattern won’t change the trend, but if confirmed, it could lead to a 2 to 3 day counter-trend correction.