E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 26, 2017 Forecast

December E-mini NASDAQ-100 Index futures are trading slightly higher shortly after the cash market opening. There was no follow-through to the downside after yesterday’s steep sell-off and the index is currently in a position to take out yesterday’s high.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Momentum has been trending lower since the closing price reversal top was formed at 6132.75 on October 18.

The minor trend turned down on Wednesday when sellers took out 6051.25.

The new short-term range is 6132.75 to 6011.00. Its 50% level or pivot at 6072.00 is controlling the short-term direction of the market. The index is currently straddling this level.

The main range is 5842.00 to 6132.75. Its retracement zone at 5987.25 to 5953.00 is the primary downside target.

Daily Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the pivot at 6072.00.

A sustained move over 6072.00 will indicate the presence of buyers. This could trigger a fast rally into a short-term downtrending angle at 6084.75. This angle is a potential trigger point for an acceleration into downtrending angles at 6108.75 and 6120.75. The latter is the last potential resistance angle before the 6132.75 main top.

A sustained move under 6072.00 will signal the presence of sellers. The daily chart is open to the downside with the next major target angle coming in at 6026.00. This is followed by yesterday’s low at 6011.00.

If 6011.00 fails then the index should complete the move into the retracement zone at 5987.25 to 5953.00.