December E-mini NASDAQ-100 Index futures surged on Tuesday, taking out a long-term downtrending angle from the contract high and a Fibonacci level. The
December E-mini NASDAQ-100 Index futures surged on Tuesday, taking out a long-term downtrending angle from the contract high and a Fibonacci level. The strong close near the high of the session puts the market in a position to follow-through to the upside.
The main range is 4118.75 to 3684.00. The retracement zone created by this range at 3952.75 to 3901.25 are new support levels.
A steep uptrending angle from the 3684.00 bottom passes through the retracement zone, making it valid support. An angle from the 4118.75 top drops in at 3934.75.
A sustained move over the Fibonacci level at 3952.75 will set a bullish tone today. The first upside target is a downtrending angle at 4026.75. Taking out this level could trigger a further rally into 4072.75.
Breaking back under 3952.75 will be the first sign of weakness. The next will be a move under the steep angle at 3940.00. Finally, crossing under the downtrending angle at 3934.75 will indicate increased selling pressure. This could lead to a break back to the 50% level at 3901.25.
The tone of the market today will be determined by trader reaction to 3952.75.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.