E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 20, 2017 Forecast

March E-mini NASDAQ-100 Index is trading higher shortly before the cash market opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility. Yesterday, the index reached a new all-time high, suggesting investors were betting on a bullish inauguration speech from President-elect Donald Trump. He gives his speech at 1715 GMT.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5074.75 will signal a resumption of the uptrend. A trade through 5025.00 will change the minor trend to down. This is followed by the next minor bottom at 4990.25.

The short-term range is 4990.25 to 5074.75. Its 50% level or pivot is 5032.50. This level is controlling the direction of the market today.

The main range is 4850.00 to 5074.75. If there is a sell-off over the near-term then look for the move to extend into its retracement zone at 4962.25 to 4935.75. An uptrending angle passes through this zone at 4954.00, making it a valid downside target.

Forecast

Based on the current price at 5066.50, the direction of the NASDAQ today is likely to be determined by trader reaction to the steep uptrending angle at 5058.00.

A sustained move over 5058.00 will indicate the presence of buyers. This could generate enough upside momentum to take out 5074.75.

A sustained move under 5058.00 will signal the presence of sellers. This could trigger an acceleration into the short-term pivot at 5032.50.

Taking out 5032.50 could trigger the start of an even sharper break with minor targets at 5025.00 and 4990.25. This is followed by 4962.25 and 4954.00.

Watch the price action and read the order flow at 5058.00 all session. Trader reaction to this angle will tell us if the bulls or the bears are in control.