E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Minor Trend, Momentum Shift to Downside
December E-mini NASDAQ-100 Index futures plummeted on Friday as fears over the discovery of a new and possibly vaccine-resistant coronavirus variant encouraged investors to shed riskier assets.
Although lower for the session, the technology-driven index is performing better than the blue chip Dow and benchmark S&P 500 Index. Ten of the 11 major S&P sectors dropped in early trading, with energy sliding 6.3% followed by financials and industrials.
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 the closing price reversal top on November 22.
A trade through 16767.50 will negate the closing price reversal bottom and signal a resumption of the uptrend. The main trend will change to down on a trade through 15896.50.
The minor trend is down. It changed to down earlier today. This move confirmed the shift in momentum. A trade through 16436 will change the minor trend to up.
On the upside, the nearest resistance is 16332.00.
On the downside, the first potential support is 16020.50. This is the last support before the 15896.50 main bottom.
The next support level is 15676.50, followed by a retracement zone at 15567.50 to 15284.50.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASDAQ-100 Index into the close on Friday is likely to be determined by trader reaction to 16020.50.
A sustained move under 16020.50 will indicate the presence of sellers. This could trigger a break into 15896.50. Taking out this level will change the main trend to down, which could extend the selling into 15676.50 and 15567.50 to 15284.50.
A sustained move over 16020.50 will signal the presence of buyers. This could trigger a late session short-covering rally into 16332.00.