E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 29, 2017 Forecast

December E-mini NASDAQ-100 Index futures are trading sharply lower shortly after the cash market opening. Unlike the S&P 500 and the Dow Jones Industrial Average, the NASDAQ did not follow-through to the upside after yesterday’s strong close.

Profit-taking is behind the selling pressure with Facebook, Netflix and Alphabet all trading over 1 percent lower.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Although the index is down over 1.30%, the sell-off has been orderly. In other words, there doesn’t seem to be any signs of a panic. Stripping away the early volatility, all the index has done is complete a little-more than 50% retracement of the rally from November 15 to November 28.

The uptrend will resume on a trade through 6429.50. The trend will change to down on a move through 6230.75.

The main range is 6230.75 to 6429.50. Its retracement zone is 6330.00 to 6306.75. This zone was tested earlier in the session when the index hit 6320.75. Buyers came in on a test of this zone.

The new short-term range is 6429.50 to 6320.75. If enough buyers come in after the test of 6320.75, we could see a rally back into its retracement zone at 6375.25 to 6388.00.

Daily Technical Forecast

Based on the current price at 6347.00 at 1543 GMT, the nearest support is the main 50% level at 6330.00, today’s intraday low at 6320.75, the main Fibonacci level at 6306.50 and an uptrending angle at 6302.75.

The uptrending angle at 6302.75 is the trigger point for an acceleration to the downside with the next target angle coming in at 6266.75.

If the intraday short-covering rally continues then look for the buying to possibly drive the index into the resistance cluster at 6374.75 to 6375.25.

If the trend is preparing to turn down then sellers are going to re-emerge at 6375.25 to 6388.00 to set up a potentially bearish secondary lower top or traders are going to sell weakness through 6302.75.