E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Traders Targeting 11550.75 – 11761.75

Bargain-hunters continue to drive the December E-mini NASDAQ-100 Index futures contract higher early Tuesday morning. This move, on top of Monday’s rally, is helping the index bounce back from its longest weekly losing streak in a year.

Although some analysts are saying the move could also be attributed to quarter-end rebalancing of investor portfolios, others are saying hopes of another coronavirus stimulus package may be providing the firepower for the rally.

At 05:14 GMT, December E-mini NASDAQ-100 Index futures are trading 11444.25, up 49.50 or +0.43%.

House Speaker Nancy Pelosi said on Monday night that the Democrats were unveiling a new $2.2 trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered.

The early price action suggests that investors may be discounting the impact of the first debate between President Donald Trump and Democratic nominee Joe Biden set for Tuesday night.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers took out 11222.00. The early move is extending the rally with the main top at 11539.00 the next upside target. The main trend will change to down on a move through 10656.50.

The main support range is 10917.50 to 10557.25. This zone provided support for the two main bottoms at 10656.50 and 10660.25.

The minor range is 11539.00 to 10656.50. The market is currently trading on the strong side of its retracement zone at 11199.50 to 11094.75. This zone is support.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is the primary upside target. Trader reaction to this zone will determine the next major move.

Daily Swing Chart Technical Forecast

The early upside momentum suggests investors are going to make a run at the main top at 11539.00, followed closely by the short-term 50% level at 11550.75.

Sellers could come in on the first test of 11539.00 to 11550.75, but overcoming the latter could trigger an acceleration to the upside with 11761.75 the next upside target.

The key support is 11199.50 to 11094.75. Since the main trend is up, buyers are likely to come in on a test of this area.

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