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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures closed higher on Friday as investors gobbled-up shares of tech mega-caps including Facebook Inc, Alphabet Inc, Amazon.com Inc, Apple Inc and Netflix Inc, or stocks of companies which tend to outperform during economic uncertainty. Investors started buying beaten-down shares after the NASDAQ entered corrective territory last week.

On Friday, December E-mini NASDAQ-100 Index futures settled at 11136.50, up 244.75 or +2.20%. The solid finish helped the broader-based NASDAQ Composite close higher for the week after falling the previous three weeks.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on September 21 and its subsequent confirmation later in the week.

A trade through 11222.00 will change the main trend to up. A move through 10656.50 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is support. This zone stopped the selling several times last week, while acting as an attractive value area for buyers.

The minor range is 11539.00 to 10656.50. Its retracement zone at 11094.75 to 11199.50 provided resistance, but it’s also the trigger point for an acceleration to the upside.

The second minor range is 12444.75 to 10656.50. If the main trend changes to up then look for an acceleration into its retracement zone at 11550.75 to 11761.75.


Short-Term Outlook

The confirmation of the closing price reversal bottom and the strong close on Friday are reasons to believe traders will be going after the main top at 11222.00 on Monday.

A trade through 11222.00 will change the main trend to up. The daily chart indicates there is plenty of room to the upside with the first target area a price cluster at 11539.00 to 11550.75. So watch for an acceleration to the upside on a strong breakout over the main top.

A failure to overcome 11222.00 or to sustain a rally over this level will signal the presence of sellers. This could lead to another week of consolidation inside 10917.75 to 10557.25. But be prepared for an acceleration to the downside if 10557.25 fails as support.

For a look at all of today’s economic events, check out our economic calendar.
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