E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 23, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The move suggests the lack of confidence in Trump. However, it suggests investors are just a little cautious. If they were bearish, I think we’d be a lot lower. Investors would like Trump to reveal the details of his economic plans.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 5083.00 will signal a resumption of the uptrend. The index is far from turning the main trend to down, but it is in the window of time to form a potentially bearish closing price reversal top.

The new minor top is 5083.00. Minor bottoms include 5025.00 and 4990.25.

The short-term range is 4990.25 to 5083.00. Its 50% level or pivot is 5036.50. This price is controlling the short-term direction of the market. If it holds then investors will try to build a support base with their eyes set on a new high. If 5036.50 fails and selling momentum builds then look for a possible acceleration to the downside with the initial targets coming in at 5025.00 and 4990.25.

Forecast

Based on the current price at 5046.50 and the early price action, the direction of the market today will be determined by trader reaction to the pivot at 5036.50.

A sustained move over 5036.50 will signal the presence of buyers. This could generate enough upside momentum to challenge the steep uptrending angle at 5074.00. Overtaking this angle will put the index in a bullish position with the next target the high at 5083.00.

A sustained move under 5036.50 will indicate the presence of sellers. The next target is the minor bottom at 5025.00. The daily chart opens up to the downside under this angle with the next target 4990.25. This is followed by the 50% level at 4966.50 and an uptrending angle at 4962.00.

Watch the price action and read the order flow at 5036.50. Trader reaction to this pivot will set the tone for the day.