E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 11, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading flat shortly before the cash market opening. The index is trading inside yesterday’s range which indicates investor indecision and impending volatility. The volatility is likely to hit during Trump’s press conference beginning at 1600 GMT.

Technical Analysis

The main trend is up according to the daily swing chart. The current price is far from turning the main trend to down, but the index does begin today’s session in the window of time for a potentially bearish closing price reversal top.

If 4850.00 to 5047.00 becomes a short-term range then its retracement zone at 4948.50 to 4925.25 will become the primary downside target.

Forecast

Based on the current price at 5032.00, the index has an equal chance of trading into a steep uptrending angle at 5074.00 or into the nearest uptrending angle at 4962.00.

Taking out 5047.00 will likely fuel an acceleration to the upside with 5074.00 the next potential target. Crossing to the strong side of this angle will put the index in a bullish position.

If traders react negatively to Trump today then look for a possible steep break into the next uptrending angle at 4962.00, followed by a short-term 50% level at 4948.50.

Expect volatility today. Don’t be surprised by a two-sided trade. Be careful buying strength and selling weakness if the volume is low. Watch for a potentially bearish higher-high, lower close at the end of the day.