E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 22, 2018 Forecast

March E-mini NASDAQ-100 Index futures are trading slightly lower shortly before the cash market opening. The index drifted lower earlier in the session in response to the U.S. government shutdown, but buyers have clawed back most of the losses, putting the index in a position to challenge the record high.

Despite the concern over the government shutdown, most investors are likely to remain focused on earnings reports.

According to CNBC, later today at 1700 GMT, the Senate is expected to try to restore federal funding again, whether on a temporary basis or for longer, while trying to fix an issue over immigration. If the vote is successful, the government will reopen on Tuesday. We could see increased volatility at that time.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6857.00 will signal a resumption of the uptrend. The trend is in no danger of turning lower, however, the session will begin with the index in a position to post a potentially bearish closing price reversal top.

If there is no follow-through to the upside, a move through 6801.50 will make 6857.00 a new minor top.

Daily Technical Forecast

Based on the early price action, the direction of the index today is likely to be determined by trader reaction to the steep uptrending Gann angle at 6831.25.

A sustained move over 6831.25 will indicate the presence of buyers. This may create the upside momentum needed to challenge or even take out 6857.00.

A sustained move under 6857.00 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target angle coming in at 6746.50.