E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 26, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. However, the market is backing off of its earlier high at 5168.50, putting the index in a position to post a potentially bearish closing price reversal top.

Technical Analysis

The main trend is up according to the daily swing chart. The index is in no danger of turning the main trend to down, but it is in the window of time for a closing price reversal top because of the prolonged rally in terms of price and time.

Minor bottoms come in at 5030.25 and 4990.25.

An intraday trade through 5168.50 will indicate the return of buyers, while a move through 5146.50 will signal that the selling is greater than the buying at current price levels.

Forecast

Based on the current price at 5153.25, the direction of the index today is likely to be determined by trader reaction to yesterday’s close at 5146.50.

Holding above 5146.50 will indicate that buyers are coming in to support the market. This may create enough upside momentum to challenge the intraday high at 5168.50. Taking out this level will create a new contract high.

A sustained move under 5146.50 will signal the presence of sellers. This could create enough downside momentum to challenge the steep uptrending angle at 5122.00. This angle is important to the structure of the market because it has guided the market higher for 17 sessions, or since the 4850.00 main bottom on December 30.

If 5122.00 fails and selling volume increases then the minor bottom at 5030.25 will become the first target.

Watch the price action and read the order flow at 5146.50 today. Trader reaction to this price will set the tone for the session.