E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – No Resistance, but Close Under 8804.25 Will Signal Return of Sellers

March E-mini NASDAQ-100 Index futures are trading higher in the pre-market session as optimism continues to drive investor appetite for risk. Investors continue to focus on the recent positive U.S.-China trade developments. The catalyst behind the strong buying remains the phase one trade agreement reached earlier this month.

Reports continue to say that the two economic powerhouses are in the process of translating the deal with the goal of signing it in early January.

At 10:07 GMT, March E-mini NASDAQ-100 Index futures are at 8826.50, up 22.25 or +0.25%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Thursday’s high. The main trend will change to down on a move through 8189.25.

We’re not looking for a change in trend, but we’d like to protect most of our gains so we’re going to be watching for a closing price reversal top. This current rally is up 17 sessions from its last main bottom. Typically, reversal are formed after 7 to 10 days so the index is well overdue. Nonetheless, the trend is your friend.

The minor trend is also up. A trade through 8707.00 will change the minor trend to down. This will shift momentum to the downside.

The first running range is 8707.00 to 8834.00. Its 50% level at 8770.50 is potential support.

The second minor range is 8319.50 to 8834.00. Its 50% level at 8576.75 is the second potential support level.

The main range is 8189.25 to 8834.00. Its retracement zone at 8511.50 to 8435.50 is the best value area.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 8826.50, the direction of the March E-mini NASDAQ-100 Index futures contract the rest of the session on Friday is likely to be determined by trader reaction to yesterday’s close at 8804.25.

Bullish Scenario

A sustained move over 8804.25 will indicate the presence of buyers. Taking out the intraday high at 8834.00 will indicate the buying is getting stronger. This could trigger an acceleration to the upside since there is no resistance.

Bearish Scenario

A sustained move under 8804.25 will signal the presence of sellers. It will also put the index in a position to form a potentially bearish closing price reversal top.

The first downside target is the first minor pivot at 8770.50. Buyers could come in on the first test of this level. If it fails then look for further weakness into the minor bottom at 8707.00.

Taking out 8707.00 will change the minor trend to down. This could trigger an acceleration to the downside with the first target 8576.75.