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James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. So far the range established during the premarket session is holding. This indicates investor indecision and impending volatility. The index is also down 7 sessions from the last main top. This puts it in the window of time for a closing price reversal bottom. This pattern will form on a close over 6926.50.

At 1421 GMT, the December E-mini NASDAQ-100 Index futures contract is trading 6816.00, up 110.50 or +1.60%.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend changes to up on a trade through 7368.50. A trade through 6734.25 will indicate the selling is getting stronger. If this creates enough downside momentum, we could see a test of the May 3 bottom at 6590.50.

Now that we’ve had a lower-low, a trade over 6926.50 will put the index in a position to post a potentially bullish closing price reversal bottom.

The minor trend is also down. A trade through 7175.00 will change the minor trend to up. This will also shift momentum to the upside.

The major support is the contract’s retracement zone at 6822.75 to 6609.00. The index is currently testing this zone. It is controlling the near-term direction of the index.


Daily Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the main 50% level at 6822.75.

A sustained move under 6822.75 will indicate the presence of sellers. The first target is the uptrending Gann angle at 6740.50. This angle was tested and held as support earlier in the session. If it fails then look for a potential acceleration to the downside with the next targets coming in at 6609.00 and 6590.50.

Additional support is 6493.00 and 6385.25.

Holding the angle at 6740.50 will signal the presence of buyers, but overcoming 6822.75 will indicate the buying is getting stronger. This could trigger a breakout to the upside with a 50% level at 6954.75 the next target. Look for sellers on the first test of this level.

Overcoming and sustaining a move over 6954.75 will indicate the buying is getting stronger with the next major target angle coming in at 7120.75.

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