E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 19, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly lower in limited price action shortly before the cash market opening. Volume and volatility may be light today ahead of Trump’s inauguration on Friday.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5063.25 will signal a resumption of the uptrend.

A trade through 5025.00 will turn the minor trend down and could trigger a break into the next minor bottom at 4990.25. This is another trigger point for an acceleration to the downside.

The short-term range is 4990.25 to 5063.25. Its 50% level or pivot at 5026.75 is controlling the short-term direction of the market.

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

Forecast

Based on the current price at 5051.00 and the earlier price action, the direction of the index today will be determined by trader reaction to the steep uptrending angle at 5042.00. This angle is important because it has been guiding the market higher for 12 sessions. A failure at this angle could change the structure of the chart pattern.

A sustained move over 5042.00 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the all-time high at 5063.25.

A sustained move under 5042.00 will signal the presence of sellers. The first target is the price cluster at 5026.75 to 5025.00. This area is the trigger point for an acceleration into 4990.25.

If 4990.25 fails then look for the move to extend into the major 50% level at 4956.50 then an uptrending angle at 4946.00.

Watch the price action and read the order flow at 5042.00 all day. Trader reaction to this angle will tell us if the bulls are still coming in to support the rally or if sellers are starting to take control.