E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Close on Weak Side of Daily Pivot

December E-mini NASDAQ-100 Index futures retreated from record highs for a second session as a solid rise in U.S. producer prices (PPI) deepened concerns over inflation. The fundamentals remain sound which leads us to believe the price action is being fueled by money managers lightening up positions ahead of Wednesday’s report on U.S. consumer inflation (CPI).

At 20:21 GMT, December E-mini NASDAQ-100 Index futures are trading 16190.75, down 137.00 or -0.84%.

In economic news, U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could persist for a while amid tight global supply chains related to the pandemic. Data on Wednesday is expected to show strong gains in consumer prices in October, according to a Reuters survey of economists.

In stock related news, Tesla Inc shed 4.6%, extending declines from the previous session after Chief Executive Officer Elon Musk’s Twitter poll proposing to sell a tenth of his holdings garnered a 57.9% vote in favor of the sale.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 16448.50 will signal a resumption of the uptrend. A move through 15273.75 will change the main trend to down.

The minor range is 16448.50 to 16160.00. The market is currently trading under its 50% level at 16304.25, making it resistance.

The new short-term range is 15273.75 to 16448.50. Its 50% level at 15861.00 is the next support level.

The main range is 14367.75 to 16448.50. Its retracement zone at 15408.00 to 15162.50 is the nearest value zone.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index into the close on Tuesday is likely to be determined by trader reaction to 16304.25.

Bearish Scenario

A sustained move under 16304.25 will indicate the presence of sellers. Taking out the intraday low at 16160.00 will indicate the selling pressure is getting stronger. If this continues to generate enough downside momentum then look for the selling to possibly extend into the next 50% level at 15861.00.

Bullish Scenario

A sustained move over 16304.25 will signal the presence of buyers. This could trigger a retest of 16448.50.