E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 19, 2018 Forecast

Based on the early price action, the direction of the index today will be determined by trader reaction to the steep uptrending Gann angle at 6799.25.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The index even touched a new all-time high earlier in the session despite worries about a possible government shutdown.

On Thursday night, the U.S. House of Representatives passed a bill to avoid a government shutdown, forwarding it to the Senate. Sixty votes are needed from the Senate to pass the spending bill in order to get it sent to President Donald Trump’s desk.

Congress has to pass the bill by the end of Friday to avoid a shutdown.

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Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The trade through 6845.75 signaled a resumption of the uptrend.

Due to the higher-high and the lack of follow-through to the upside, traders have to watch for the formation of a closing price reversal top. The key number to watch is yesterday’s close at 6813.00.

An intraday move under this price will indicate the presence of sellers. A close under this price will form the reversal top.

The main range is 6383.25 to 6845.75. Its retracement zone is 6618.00 to 6562.50. If a reversal top is formed and there’s a follow-through to the downside, then this zone will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the index today will be determined by trader reaction to the steep uptrending Gann angle at 6799.25.

A sustained move over 6799.25 will indicate the presence of buyers. This could generate the upside momentum needed to continue the rally.

A sustained move under 6799.25 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target angle coming in at 6730.25.

The angle at 6730.25 is another trigger point for a steep drop into the 50% level at 6618.00.

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