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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening and the release of another bearish economic report that fanned the flames of recession.

The index spiked lower immediately after the release of the ISM Non-Manufacturing PMI report at 14:00 GMT, but rebounded quickly as bargain-hunters stepped in to stop the price slide.

The index is now in a position in a position to post a closing price reversal bottom that could trigger the start of a 2 to 3 day counter-trend rally.

At 14:58 GMT, December E-mini NASDAQ-100 Index futures are trading 7545.00.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out yesterday’s low.

The index is in no position to change the main trend to up, but it is inside the window of time for a potentially bullish closing price reversal bottom. The chart pattern won’t signal a change in trend, but could trigger the start of a 2 to 3 day counter trend rally.

The main range is 7244.50 to 8002.50. Its retracement zone at 7624.50 to 7534.00 is currently being tested.

The short-term range is 7390.00 to 8002.50. Its 50% level or pivot at 7696.25 is potential resistance today.


Daily Technical Forecast

Based on the early price action and the current price at 7545.00, the direction of the December E-mini NASDAQ-100 Index the rest of the session on Thursday is likely to be determined by trader reaction to yesterday’s close at 7546.25.

Bullish Scenario

A sustained move over 7546.25 will indicate the presence of buyers. This will also put the index in a position to post a closing price reversal bottom.

The first upside target is an uptrending Gann angle at 7572.50. Overcoming this angle will indicate the buying is getting stronger. This could trigger a further rally into the 50% level at 7624.50, followed closely by a downtrending Gann angle at 7653.75.

Taking out 7653.75 could trigger an acceleration to the upside with the next target a 50% level at 7696.25.

Bearish Scenario

A sustained move under 7546.25 will signal the presence of sellers. This could lead to a test of the Fibonacci level at 7535.00. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at 7408.50.

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