E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 9, 2018 Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the main 50% level at 7154.75.
James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Sellers are being influenced by yesterday’s U.S. Federal Reserve’s interest rate and monetary policy decisions. The Fed decided to pass on a rate hike at this meeting, however, it did maintain its hawkish stance toward future rate hikes. The fear of rapidly rising rates is one of the main reasons for last month’s steep sell-off and heightened volatility.

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Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Wednesday when buyers took out the previous main top at 7143.25.

On Thursday, the selling stopped at 7231.00. This helped form a closing price reversal top. The chart pattern doesn’t indicate a change in trend, but it could lead to the start of a 2 to 3 day correction.

A trade through 7231.00 will negate the closing price reversal top and signal a resumption of the uptrend with 7368.50 the next upside target.

The main trend will change to down on a trade through 6865.00.

The minor trend is also up. A new minor top was formed at 7231.00.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the main 50% level at 7154.75.

A sustained move under 7154.75 will indicate the presence of sellers. This could lead to a labored break with potential targets a Fibonacci level at 7067.50 and a 50% level at 6974.50.

Overcoming and sustaining a move over 7154.75 will signal the presence of buyers. This could lead to a retest of the closing price reversal top at 7231.00, followed closely by the main Fibonacci level at 7290.25.

Crossing to the bullish side of the Fib at 7290.25 will indicate the buying is getting stronger with the main top at 7368.50 the next major upside target.

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