E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 2, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading higher shortly before the release of the U.S. Non-Farm Payrolls report and the cash market opening. Driving the market higher is optimism over a possible trade deal between the United States and China. The early price action suggests today will be a risk-on day with the trade news overtaking the jobs report in importance.

At 1105 GMT, December E-mini NASDAQ-100 Index futures are trading 7087.75, up 10.00 or +0.14%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a trade through 7368.50. A move through 6580.50 will signal a resumption of the downtrend.

The minor trend is up. This move shifted momentum to the upside. The next minor trend top comes in at 7175.00. This is another potential breakout level.

The short-term range is 7368.50 to 6580.50. The index is now trading on the strong side of its retracement zone at 6974.50 to 7067.50. This indicates strength. The retracement zone is new support.

The main range is 7728.75 to 6580.50. Its retracement zone at 7154.75 to 7290.25 is the primary upside target. Since the main trend is down, sellers could come in on a test of this zone. It is also controlling the longer-term direction of the index.

Daily Technical Forecast

Based on the current price at 7087.75, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to a steep uptrending Gann angle at 7092.50.

Bullish Scenario

A sustained move over 7092.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the 50% level at .7154.75, followed closely by the minor top at 7175.00.

Taking out 7175.00 could trigger a breakout into 7290.25, followed by the main top at 7368.50.

Bearish Scenario

A sustained move under 7092.50 will signal the presence of sellers. Taking out the Fib level at 7067.50 could trigger a plunge into the 50% level at 6974.50, followed closely by a downtrending Gann angle at 6960.75.

The index is likely to weaken under 6960.75. This will indicate the selling is getting stronger with the next target angle coming in at 6836.50.

The key number to watch today is 7092.50.