E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 21, 2018 Forecast

December E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. The technology-based index is being supported by a strong performance by the “FAANG” stocks. Shortly before the opening, Facebook shares are up more than 1 percent. Amazon and Netflix are trading more than 2 percent higher. Apple and Google’s parent Alphabet are up 1.3 percent and 1.2 percent, respectively.

Stocks are also being boosted by an easing of tensions between Italy and the European Union over budgetary issues. A weaker U.S. Dollar and firmer crude oil prices are also being deemed as supportive.

At 1300 GMT, December E-mini NASDAQ-100 Index futures are trading 6615.00, up 82.50 or +1.26%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Today is the ninth day down from the last swing top so the session begins with the index inside the window of time for a potentially bullish closing price reversal bottom.

A trade through 6449.50 will signal a resumption of the downtrend. This could trigger a break into a main bottom at 6449.50.

The minor trend is also down. A trade through 6934.50 will change the minor trend to up.

Daily Swing Chart Technical Forecast

Based on the early price action, it looks as if the direction of the December E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to yesterday’s low at 6449.50.

Bullish Scenario

A sustained move over 6449.50 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a potential rally into the Fibonacci level at 6609.00. Overtaking this level with conviction could create the momentum needed to challenge the 50% level at 6822.75.

Bearish Scenario

The inability to overcome 6609.00 will signal the presence of sellers. This could drive the market back into yesterday’s low at 6449.50. This is followed closely by the February 8 bottom at 6385.25.

Look out to the downside if 6385.25 is taken out with rising volume. There is no major support until 5916.75.