E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 30, 2014 Forecast

On Wednesday, the December E-mini NASDAQ-100 Index posted an inside day, indicating trader indecision and impending volatility. If the market is going through a transition then look for a bias to the downside today.

The Fed’s slightly hawkish monetary policy statement may be forcing investors to pause a bit and reassess the situation. On one hand, the central bank hinted at raising rates while sounding more impressed with the economy. On the other hand, they did not reveal a timetable for an interest rate hike.

Technically, the index is in the window of time for a top. Typically, this comes in the form of a closing price reversal top. This is still possible today, but the market will have to make a higher-high and a lower-close.

The first resistance is an angle that has been tested twice over the past two days at 4089.75 today. This is the last angle before the contract high at 4118.75.

A failure at 4089.75 will be the first sign of weakness. The second will be a break under the angle at 4060.75.

The daily chart opens up under this angle with the next potential target at 4004.00. Watch for a technical bounce on the first test of this level, however, if the selling pressure is greater than the buying than this price has the potential to be an acceleration point to the downside.

 The tone of the day is likely to be determined by trader reaction to 4060.75.