E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 10, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. There isn’t any major news, but the trade talks are over and the market knows the Fed is dovish so these are good reasons to begin booking profits after almost a two-week rally. Look for the start of a correction into a value area.

At 1442 GMT, March E-mini NASDAQ-100 Index futures are trading 6543.00, down 61.75 or -0.93%.

Technical Analysis

The main trend is up according to the daily swing chart. The nearest upside target is the main top at 6897.00. A trade through 6136.50 will change the main trend to down.

The main range is 6897.00 to 5820.50. Its retracement zone at 6485.75 to 6358.75 is the nearest downside target and possible support zone. This zone is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to downtrending Gann angle at 6593.00.

Bullish Scenario

A sustained move over 6593.00 will indicate the presence of buyers. If this generates enough upside momentum then look for the index to possibly challenge yesterday’s high at 6645.00.This could trigger a spike to the upside with the next target angle coming in at 6745.00. This is the last major resistance angle before the 6897.00 main top.

Bearish Scenario

A sustained move under 6593.00 will signal the presence of sellers. The first downside target is the major Fibonacci level at 6485.75. This is followed closely by a steep uptrending Gann angle at 6460.50.

The angle at 6460.50 is also the trigger point for an acceleration to the downside with the major 50% level at 6358.75 the next target.