E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 12, 2018 Forecast

March E-mini NASDAQ-100 Index futures are trading higher early Friday. Yesterday, the index rallied sharply higher in reaction to weaker-than-expected U.S. producer price data. The weak factory inflation number raises questions about whether the Fed will be able to raise interest rates the three times in 2018 it forecast in December. Stock investors like low interest rates.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Friday’s early gains signaled a resumption of the uptrend. The only thing investors have to worry about is a lower close. Finishing below yesterday’s close at 6726.50 will form this potentially bearish closing price reversal top.

Daily Technical Forecast

Based on the early price action, the direction of the NASDAQ-100 Index is likely to be determined by trader reaction to Thursday’s close at 6726.50.

A sustained move over 6726.50 will indicate the presence of buyers.

A sustained move under 6726.50 will signal the return of sellers. If the intraday selling pressure increases on this move then look for a possible break into a pair of uptrending Gann angles at 6671.25 and 6666.75. Since the trend is up, we could see a technical bounce on the first test of these angles.

We could see an acceleration to the downside if 6666.75 fails as support. The trigger point for an even further break is the minor bottom at 6628.25.