E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 11, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower at the mid-session. The index is trading inside yesterday’s range which suggests investor indecision and impending volatility. Putting a lid on prices are worries over the U.S. government shutdown and concerns about the slowing Chinese economy.

On Thursday, Fed Chair Jerome Powell said, “The Chinese economy is slowing down. It’s showing up a lot in consumer spending. Weak retail spending; everyone has seen the Apple news.” Apple is a major technology stock.

At 1736 GMT, March E-mini NASDAQ-100 Index futures are trading 6610.25, down 15.00 or -0.23%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6645.00 will signal a resumption of the uptrend. The next major target is the 6897.00 main top. A trade through 6136.50 will change the main trend to down.

The minor trend is also up. A trade through 6527.50 will change the minor trend to down. This will also shift momentum to the downside.

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

Daily Technical Forecast

Based on the earlier price action and the current price at 6610.25. The direction of the March E-mini NASDAQ-100 Index futures into the close on Friday is likely to be determined by trader reaction to the long-term downtrending Gann angle at 6577.00

Bullish Scenario

Overtaking and sustaining a rally over 6577.00 will indicate the presence of buyers. The first target is the minor top at 6645.00. This is followed by a long-term downtrending Gann angle at 6737.00.

The angle at 6737.00 is the trigger point for an acceleration to the upside with the next target angle coming in at 6817.00. This is the last potential resistance angle before the 6897.00 main top.

Bearish Scenario

A sustained move under 6577.00 will signal the presence of sellers. If this move creates enough downside momentum then look for a break into the minor bottom at 6527.50. Taking out this level will change the minor trend to down. This could trigger a further break into an uptrending Gann angle at 6524.50. Since the main trend is up, look for buyers on the first test of this angle.

If 6524.50 fails then look for the selling to extend into the main Fibonacci level at 6485.75. The daily chart is wide open under this price with the main 50% level at 6358.75 the next major downside target.