E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 24, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. The market is trying to follow-through to the upside following yesterday’s strong recovery after early session weakness.

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 trend won’t turn down until 4850.00 is violated, but the index is in the window of time for a potentially bearish closing price reversal top.

A trade through 5069.75 will make 5030.25 a new minor bottom. Other minor bottoms are 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 near-term direction of the market.

The main range is 4850.00 to 5083.00. If there is a steep sell-off then its retracement zone at 4966.50 to 4939.00 becomes the primary downside target.

Forecast

Based on the last price at 5067.00, the first major upside target is the all-time high at 5083.00. This is followed by the steep uptrending angle at 5090.00. Overtaking this angle will put the index in an extremely bullish position.

If the index fails to follow-through to the upside then this may be the first sign that the selling is greater than the buying at current price levels. If selling volume picks up then look for the break to extend into the short-term pivot at 5036.50. This is followed by yesterday’s low at 5030.25 and the next minor bottom at 5025.00.

The bottom is the trigger point for a steep break into the next minor bottom at 4990.25. This is the last minor bottom before an uptrending angle at 4970.00.

Today’s session will be all about momentum. If the upside momentum is accompanied by rising volume then look for buyers to make a run at 5083.00 then 5090.00.

If the momentum begins to shift to the downside then the first target is 5036.50. This is the short-term pivot that is controlling the near-term direction of the market.