E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – New Record High; Close Below 6004.00 Bearish

December E-mini NASDAQ-100 Index futures rallied to a new contract high early Thursday. The index surged on a breakout over a pair of tops at 6018.25 and 6025.75 before stalling at 6040.50. There is no resistance, which means investors should concentrate on the chart pattern.

The main trend is up according to the daily swing chart. However, the index is also up eight sessions from the 5842.00 bottom on September 25. This puts it in the window of time for a potentially bearish closing price reversal top.

The first sign of weakness will be a break below the previous top at 6025.75. This is followed by the next top at 6018.25. Breaking below these levels will mean that the spike to the upside was likely fueled by buy stops and short-covering rather than new positions. This is a potentially bearish signal.

A trade below yesterday’s close at 6004.00 will turn the index down for the session and could form a potentially bearish closing price reversal top if it closes below this level.

The first uptrending Gann angle support comes in at 5970.00. We could see a technical bounce on the first test of this level, but if it fails, look out to the downside.