E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 3, 2019 Forecast

Shares of Apple and other technology-related stocks continue to weigh on the March E-mini NASDAQ-100 Index futures contract shortly after the cash market. The selling began in the after-market session on Wednesday when Apple lowered its guidance for the first quarter, citing a drop in revenue.

At 1533 GMT, the index is trading 6204.25, down 166.75 or -2.64%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the closing price reversal bottom was formed on December 26.

The minor trend is also down. A trade through 6409.25 will change the minor trend to up. This will also reaffirm the shift in momentum.

The main range is 6897.00 to 5820.50. Its retracement zone at 6358.75 to 6475.75 is resistance. This zone stopped the rally at 6409.25 on Wednesday.

The short-term range is 5820.50 to 6409.25. Its retracement zone at 6114.75 to 6045.50 is the primary downside target. Look for a technical bounce on the first test of this zone. If it fails as support then look for the selling to continue.

Daily Technical Forecast

The first downside target on Thursday is the steep uptrending Gann angle at 6140.50. This is followed closely by the short-term retracement zone at 6114.75 to 6045.50. Watch for aggressive counter-trend buyers to show up on a test of this zone.

If 6045.50 fails as support then look for the selling to extend into the next uptrending Gann angle at 5980.50.

Resistance is a 50% level at 6358.75, followed by a downtrending Gann angle at 6449.00.