E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 3, 2017 Forecast

December E-mini NASDAQ-100 Index futures are called higher based on the pre-market session. After yesterday’s late sell-off and closing price reversal top, the market is posting an inside move. This typically indicates investor indecision and impending volatility.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Momentum is trending higher however. A trade through 6009.75 will negate the closing price reversal top. A trade through 6018.25 will signal a resumption of the uptrend. A move through 6025.75 could trigger an acceleration to the upside.

A trade through 5958.50 will confirm yesterday’s closing price reversal top. This could lead to the start of a 2 to 3 day correction and/or a 50% correction of the last rally.

The short-term range is 5842.00 to 6009.75. If there is a confirmation then look for a pullback into its retracement zone at 5825.75 to 5906.00.

Daily Forecast

Based on the earlier price action, look for an upside bias on a sustained move over 5996.25. This could lead to a test of a downtrending angle at 6007.25. This is the last potential resistance angle before the 6009.75 reversal top, and the main tops at 6018.25 and 6025.75.

A sustained move under the angle at 5974.25 will give the market a downside bias. This could lead to a break into the steep uptrending angle at 5938.00. We could see a technical bounce on the first test of this angle, but if it fails then look for a further break into the retracement zone at 5925.75 to 5906.75.

If the volume and volatility are strong enough today, we’re going to see a breakout through either 6009.75 or 5958.50. If there is no volatility and volume is low then we’ll stay in a range. However, the longer the index stays in a range, the bigger the more dramatic the eventual breakout move.