E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 24, 2014 Forecast

Despite Wednesday’s potentially bearish closing price reversal top, the December E-mini NASDAQ 100 Index rallied sharply higher after bearish traders failed to confirm the chart pattern by following through to the downside.

The move established support at a major Fibonacci level at 3952.75.

The first upside target is a downtrending angle from the contract high at 4018.75. The daily chart indicates there is plenty of room to the upside if traders take out this angle with conviction. The major upside target today is a cluster of two angles at 4068.00 to 4068.75.

If the rally fails at 4018.75 then look for selling pressure. It may be profit-taking or short-selling. A sustained move through this level could drive the market back to the Fibonacci level at 3952.75 if the downside momentum is strong enough.

The daily chart opens up under 3952.75 with the 50% level at 3901.25 a potential target.

The tone of the market today will be determined by trader reaction to the angle at 4018.75. This price may act like a pivot until investors decide which way they would like to take the market.