E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 14, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. Longs are being encouraged to book profits in reaction to weak trade balance data from China, general nervousness ahead of the start of earnings season and worries over the government shutdown. Perhaps slowing the downside momentum is optimism that the U.S. and China will reach a trade deal.

At 1452 GMT, March E-mini NASDAQ-100 Index futures are trading 6545.00, down 67.75 or -1.02%.

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. A move through 6136.50 will change the main trend to down.

The minor trend is up. The minor trend will change to down on a trade through 6527.50. This will also push 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. It is controlling the near-term direction of the index. It should be considered support.

Daily Technical Forecast

Based on the early price action and the current price at 6545.00, the direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to an uptrending Gann angle at 6588.00 and a downtrending Gann angle at 6561.00.

Bullish Scenario

A sustained move over 6588.00 will indicate the presence of buyers. This could trigger a rally into the main top at 6645.00. Taking out this top could create the upside momentum needed to challenge the next downtrending Gann angle at 6729.00.

Bearish Scenario

A sustained move under 6561.00 will signal the presence of sellers. This could trigger a further break into the minor bottom at 6527.50. If this fails then look for the selling to extend into the main Fibonacci level at 6485.75.

Look for a technical bounce on the first test of 6485.75, but if it fails then watch for an acceleration to the downside with the 50% level at 6358.75 the next major target.