December E-mini NASDAQ-100 Index futures are expected to open higher based on the pre-market trade. The market is trading inside yesterday’s range which indicates investor indecision and impending volatility. The market is also trading near the contract high which makes it an easy target to take out on the opening.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 6424.00 will signal a resumption of the uptrend.
Daily Technical Forecast
Due to the prolonged move up in terms of price and time, today’s session begins with the market in the window of time for a potentially bearish closing price reversal top.
While taking out 6424.00 will signal a resumption of the uptrend, taking out this level then breaking back under yesterday’s close at 6413.25 will indicate the selling is greater than the buying at current price levels.
This will also put the index in a position to form a potentially bearish closing price reversal top.
Essentially, 6413.25 is the most important price today.
On the downside, the first support angle comes in at 6379.00. This is followed by a short-term uptrending angle at 6358.75. Since the trend is up, look for buyers to come in on a test of these angles.
Look out to the downside if 6358.75 fails as support. This could trigger the start of a steep decline.