E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 6, 2015 Forecast

December E-mini NASDAQ-100 Index futures are trading flat shortly before the release of the U.S. Non-Farm Payrolls report and cash market opening. Today’s report is likely to trigger a volatile response whether it is bullish or bearish.

Traders are estimating the economy added 179K jobs in October. The unemployment rate is expected to be unchanged at 5.1%. The key component of the report will be the Average Hourly Earnings figure because this number is a predictor for future inflationary trends and a key determinant in the timing of the Fed rate hike. It is forecast to rise 0.2% leaving the annual rate unchanged at 2.2%.

The main trend is up according to the daily swing chart. The short-term range is 4625.00 to 4729.75. Its pivot or 50% level is 4677.25. This level held as support on Thursday. Trader reaction to this level will likely determine the direction of the market today.

A sustained move over 4677.25 will indicate the presence of buyers. The first upside target is the closing price reversal top at 4729.75. Taking out this level will negate the chart pattern. This could also trigger an acceleration to the upside since the next target is well above 4800.00.

A sustained move under 4677.25 will signal the presence of sellers. The daily chart is wide open under this level with the first target this week’s low and minor bottom at 4625.00. This is followed by a short-term uptrending angle at 4589.50.

This angle is also a trigger point for a further decline with the primary targets a retracement zone at 4523.50 to 4475.00 and a long-term uptrending angle at 4488.75.

Watch the price action and read the order flow at 4677.25 today. Trader reaction to this level will tell us whether the bulls or the bears are in control.