E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 10, 2017 Forecast

March E-mini NASDAQ-100 Index futures are called flat shortly before the cash market opening. There’s not much to say about this market. Money managers had investment capital to place on Monday and they chose this index because it didn’t have any exposure to crude oil that was dragging down the other indexes. Well, that’s what I think. It could also be they think the tech and biotech sectors are immune to Trump.

Technical Analysis

The main trend is up according to the daily swing chart. The index is far from turning the main trend to down. However, on Wednesday we enter the window of time for a potentially bearish closing price reversal top. So we may see two days of higher highs, but tomorrow we may end lower for the session.

The short-term range is 4850.00 to 5029.50. If there is a sell-off today, then its retracement zone at 4939.75 to 4918.50 will become the primary downside target.

Forecast

Based on the current price at 5023.00 and the early price action, it looks as if the tone of the day will be determined by trader reaction to the steep uptrending angle at 5042.00.

Overcoming 5029.50 will not be enough to generate a huge rally, but crossing to the strong side of the angle at 5042.00 will put the index in an extremely strong position if there is enough buying volume behind it to support the move. If the volume is light then we could turn down quickly, putting the index in a position to form a reversal top.

If there is no upside bias and longs begin to get nervous then profit-taking and aggressive counter-trend shorting could trigger the start of a steep break. The first downside target is an uptrending angle at 4946.00.

Today will be all about sustaining the upside momentum and if buyers are willing to come in strong enough to overcome 5042.00. If not then look out to the downside.