E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 23, 2019 Forecast

Technology stocks are trading higher on Wednesday, helped by strong performances in the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average. IBM, a technology stock, is one of the catalysts leading the major indexes higher. The early price action suggests investors are focusing on earnings today rather than external factors such as the ongoing trade dispute between the United States and China, and reports of a slowing global economy.

At 1500 GMT, March E-mini NASDAQ-100 Index futures are trading 6712.50, up 59.75 or +0.90%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has shifted to the downside. A trade through 6828.25 will signal a resumption of the uptrend with 6897.00 the next major target. A trade through 6521.50 will change the main trend to down.

The minor trend is down. It changed to down on a trade through 6612.25 on Tuesday. This shifted momentum to the downside.

The short-term range is 6521.50 to 6828.25. Its 50% level or pivot at 6675.00 is controlling the short-term direction of the index.

The main support is the retracement zone at 6485.75 to 6358.75.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index will likely be determined by trader reaction to the pivot at 6675.00.

Bullish Scenario

A sustained move over 6675.00 will indicate the presence of buyers. Holding above the uptrending Gann angle at 6713.50 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for a rally into the downtrending Gann angle at 6789.00. This is followed by the minor top at 6828.25 and the next downtrending Gann angle at 6870.00. This is the last potential resistance angle before the 6897.00 main top.

Bearish Scenario

A sustained move under 6674.75 will signal the presence of sellers. The first target angle is 6617.50. If it fails then look for a move into the minor bottom at 6612.25. Taking this out will change the minor trend to down. This could trigger an acceleration to the downside with the next key targets 6521.50 and 6485.75.