E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 4, 2017 Forecast

December E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since September 25. The closing price reversal top on October 2 has seemingly stopped the momentum. Additionally, yesterday’s inside move suggests investor indecision and impending volatility.

A trade through 6009.75 will negate the closing price reversal top. A trade through 6018.25 will change the main trend to up. This could lead to a test of the contract high at 6025.75. A trade through this level could trigger an acceleration to the upside.

The new short-term range is 5925.75 to 5906.00. If there is a sell-off then its retracement zone at 5925.75 to 5906.75 will become the primary downside target.

Daily Forecast

Based on the earlier price action, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 5994.25.

A sustained move under 5994.25 will indicate the presence of sellers. This could trigger a break into the next downtrending angle at 5970.25. A failure at this angle will lead to a test of the steep uptrending angle at 5954.00.

The angle at 5954.00 is the most important angle today. If it fails then look for a steep plunge to at least 5925.75.

Overcoming and sustaining a rally over 5994.25 will signal the presence of buyers. This could drive the market into the next downtrending angle at 6006.25. This is the last potential resistance angle before the high at 6009.75 and the main tops at 6018.25 and 6025.75.