December E-mini NASDAQ-100 Index futures closed on its high and with enough upside momentum to continue the move on Monday. However, today is the seventh
December E-mini NASDAQ-100 Index futures closed on its high and with enough upside momentum to continue the move on Monday. However, today is the seventh day up from the 3684.00 bottom which puts the index in the window of time for a potentially bearish closing price reversal top.
Daily December E-mini NASDAQ-100 Index
Watch for early upside action, but keep an eye on the intraday charts for topping action. This could be a closing price reversal top on the hourly chart, or an “M” formation.
If the upside momentum continues then the first target is a downtrending angle at 4092.75. This is the last resistance angle before the 4118.75 contract high.
A break back below a downtrending angle at 4014.75 will indicate weakness. The daily chart indicates there is room to the downside with the Fibonacci level at 3952.75 the next likely target.
The tone of the market will be determined by trader reaction to 4014.75. Watch for a potentially bearish closing price reversal top formation.
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.
