E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 16, 2018 Forecast

March E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. Earlier in the session, the market posted a new all-time high.

Given the prolonged move up in terms of price and time, the first sign of a short-term top is likely to be a closing price reversal top. We already had the higher-high earlier today. Therefore, we’ll have to monitor the price action and read the order flow on a test of yesterday’s close at 6780.25.

An intraday move through 6780.25 will indicate the selling is greater than the buying at current price levels. A close below this level will form the reversal top. If confirmed, this chart pattern could trigger the start of a 2 to 3 day correction equal to at least 50% of the current rally.

There is no resistance at this time so all investors have to worry about is the potentially bearish chart pattern.

The nearest support is a steep uptrending Gann angle, moving up at a rate of 32 points per day from the 6383.25 bottom. This angle comes in at 6735.25 today. Since the main trend is up, we could see a technical bounce on the first test of this angle. If it fails then look for the selling to extend into a long-term uptrending Gann angle at 6698.75.

The angle at 6698.75 is the trigger point for a sharp break into 6628.25. Taking out this level could trigger an acceleration to the downside.