E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 18, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading flat shortly before the cash market opening and the U.S. consumer inflation report.

Technical Analysis

The main trend is up according to the daily swing chart. The uptrend will resume on a trade through 5063.25.

A trade through 5025.00 will change the minor trend to down. This could trigger a move into the next minor bottom at 4990.25.

The short-term range is 4990.25 to 5063.25. Its 50% level or pivot is 5026.75. This price is controlling the short-term direction of the market. It provided support on Tuesday when the market posted a low at 5025.00.

The main range is 4850.00 to 5063.25. If there is a sharp break then its retracement zone at 4956.50 to 4931.50 will become the primary downside target.

Forecast

Based on the current price at 5045.25, the direction of the market today is likely to be determined by trader reaction to the support cluster at 5026.75 and 5026.00.

A sustained move over 5026.75 will signal the presence of buyers. This could generate enough upside momentum to challenge the all-time high at 5063.25.

A sustained move under 5026.00 will indicate the presence of sellers. Taking out the minor bottom at 5025.00 should trigger an acceleration to the downside if there is selling volume behind it. The daily chart opens up to the downside under this level with the next target the minor bottom at 4990.25.

If 4990.25 fails then selling should increase and we should see an eventual test of the 50% level at 4956.50, followed closely by the uptrending angle at 4938.00.