E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 8, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading sharply higher shortly after the cash market opening. The rally is being fueled by a surge in technology stocks led by strong gains in Facebook, Amazon, Netflix and Google-parent Alphabet. All were up at least 0.9 percent. Shares of Apple are also bouncing back with a 1.3 percent gain. Investors are pinning their hopes on an end to the US-China trade dispute and a slower pace of future Fed rate hikes.

At 1400 1500 GMT, March E-mini NASDAQ-100 Index futures are trading 6544.75, up 47.75 or +0.74%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next major target is the swing top at 6897.00. A trade through 6136.50 will change the main trend to down.

The main range is 6897.00 to 5820.50. Its retracement zone at 6485.75 to 6358.75 is new support. Holding above this zone will help maintain the upside bias.

Traders should also watch for a possible closing price reversal top since the market is up eight trading sessions since the December 26 main bottom.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session will be determined by trader reaction to the main Fibonacci level at 6485.75.

Bullish Scenario

A sustained move over 6485.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into the nearest downtrending Gann angle at 6625.00. Look for a technical bounce on the first test of this angle.

If buyers can take out 6625.00 with conviction then look for the rally to possibly extend into the next downtrending Gann angle at 6761.00.

Bearish Scenario

Taking out 6485.75 will signal the presence of sellers. If this generates enough downside momentum then look for a potential acceleration into a support cluster at 6358.75 to 6353.00. This is followed by a downtrending Gann angle at 6332.50.

Look out to the downside if 6332.50 fails as support.