James Hyerczyk
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E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures finished lower on Friday as renewed concerns over U.S.-China trade relations encouraged tech investors to trim positions ahead of the weekend and at the end of the month. In the cash market, the NASDAQ Composite gained 4.5% in November. They also posted their best month since June.

On Friday, December E-mini NASDAQ-100 Index futures settled at 8417.50, down 37.25 or -0.44%.

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Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8458.75 will signal a resumption of the uptrend. The main trend will change to down on a trade through 8216.25.

The main range is 8216.25 to 8458.75. Its 50% level at 8337.50 is a potential downside target.

The minor range is 8161.00 to 8458.75. Its 50% level comes in at 8309.75.


Short-term Outlook

The market hit a record high at 8458.75 on November 27, the day before the U.S. Thanksgiving holiday. The move was made on extremely low volume. Friday’s sell-off also took place on a day that featured well-below average volume. I bring this up because I don’t have much confidence in either move, meaning the market may drift back into price levels seen last Monday or Tuesday. Or even the week before.

Furthermore, investors are worried about U.S.-China trade relations again and this may encourage them to take a little off the top after a stellar performance in November.

The first downside target is an uptrending Gann angle at 8392.25. It has been guiding the index higher since the 8216.25 main bottom on November 14, however, it hasn’t really been tested as support.

Watch for a technical bounce on the first test of 8392.25, but if it fails then look for the selling to possibly extend into the first 50% level at 8337.50. This is followed by another 50% level at 8309.75 and another uptrending Gann angle at 8304.25.

The direction of the market will be determined by whether investors feel the need to chase the market higher, or wait for a pullback into support or a value area. The catalyst behind the price action is likely to be news about the trade deal.

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