E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Key Level to Watch into Close is 11238.25

December E-mini NASDAQ-100 Index futures are inching lower late in the session on Thursday. Earlier in the session, the tech driven index edged higher in volatile trading as investors cautiously bought heavyweight tech-related stocks after a recent sell-off while awaiting more coronavirus fiscal aid amid growing evidence of a sputtering economic recovery.

At 18:19 GMT, December E-mini NASDAQ-100 Index futures are trading 11254.25, down 138.50 or -1.22%.

Amazon.com rose 1.3% and Tesla Inc jumped 6%, supporting the NASDAQ’s advance. Stay-at-home winners Apple Inc, Microsoft Corp and Netflix Inc were marginally lower.

The NYSE FANG+TM Index, which includes the core FAANG stocks, was up 1.1%.

The buying dried up and the index began to drift lower shortly after the cash market opening after a report showed initial claims for state unemployment benefits totaled a seasonally adjusted 884,000 for the week ended September 5, matching the number of applications received in the prior week as layoffs and furloughs persisted across industries.

Meanwhile, the U.S. Senate was set to vote later in the day on a significantly scaled back Republican coronavirus relief bill in what could be the final vote on fiscal aid in Congress before the November 3 presidential and congressional elections.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of a closing price reversal top on September 2.

A trade through 10833.00 will change the main trend to down. A move through 12444.75 will signal a resumption of the uptrend.

The minor trend is down. This is contributing to the downside momentum. The new minor bottom is 10924.75. A trade through this level will negate yesterday’s minor closing price reversal bottom.

The main range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is a potential support zone. Wednesday’s low came in just above this area at 10924.75.

The minor range is 12444.75 to 10924.75. Its retracement zone at 11684.75 to 11864.00 is the primary upside target.

Short-Term Outlook

On the upside, the key area to watch over the short-run is 11684.75 to 11864.00. Trader reaction to a test of this zone should set the near-term tone.

We expect to see aggressive counter-trend sellers to come in on a test of this area. They are going to try to form a potentially bearish secondary lower top.

Trend trading buyers are going to try to trigger a breakout over 11864.00 in an effort to challenge the contract high at 12444.75.

Earlier in the week, buyers came in to defend the uptrend, but a second test of 10924.75 to 10917.50, could fail, triggering a test of the main bottom at 10833.00. Taking out this level will change the main trend to down. This could lead to an extension of the selling into the main Fibonacci level at 10557.25.