E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 15, 2014 Forecast

December E-mini NASDAQ-100 Index futures posted an inside day on Tuesday, indicating impending volatility and perhaps trader indecision.

The main range is 3409.75 to 4118.75. Its retracement zone is 3764.25 to 3680.50. The low this week at 3792.50 is slightly above the upper or 50% level which could mean that aggressive buyers came in early or shorts decided to begin covering rather than waiting for a full retracement into the zone.

If 3792.50 is taken out with conviction then look for a test of 3764.25. There could be a technical bounce on the first test of the level, but if heavy selling pressure begins then look for an acceleration into the lower or Fibonacci level at 3680.50. A long-term angle at 3663.75 is also a potential target.

Holding 3792.50 will be the first sign of bottoming action today. Overtaking the steep downtrending angle at 3830.75 will be the next.

The daily chart opens up to the upside over 3830.75 with the first target an uptrending angle at 3917.75. Overtaking this angle could fuel a move into the next downtrending angle at 3974.75.

The early tone will be determined by trader reaction to 3830.75. If buyers can’t sustained a move over this angle then look for a trade into 3764.25.

3830.75 is the number that will determine whether the index rallies to 3917.75 or breaks to at least 3764.25.