E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 28, 2014 Forecast

The strong close by the December E-mini NASDAQ-100 Index on Monday has put the market in a position to open higher today.

The first resistance angle to overcome drops in at 4062.75. This is followed by another angle at 4090.75. This angle is the last resistance before the September 19 contract high at 4118.75.

Today is the ninth day up from the 3684.00 main bottom, putting the market in a position to post a potentially bearish closing price reversal top. Traders should watch for early indications of topping action on the intraday charts such as “M” formations or closing price reversal tops on the 15- or 60-minute charts.

Sellers could hit the market if the rally fails at or near 4062.75. The daily chart indicates there is plenty of room to the downside with 4006.75 the next potential target.

The daily chart opens up under 4006.75 with the nearest support coming in at 3972.00.

The tone of the market will be determined by trader reaction to 4062.75. This price may act like a pivot throughout the trading session. If long, be prepared to take action following the formation of an intraday closing price reversal top. This could lead to a potentially bearish reversal on the daily chart. Make sure you have an exit strategy in mind before the opening and try to stay one-step ahead of the big money traders.