E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 7, 2014 Forecast

December E-mini NASDAQ-100 Index futures rallied early on Monday, but ran into selling pressure inside a retracement zone at 4023.25 to 4045.75. The close below this zone gives the market a bias to the downside today. This zone is once again resistance. .

Additional resistance is a downtrending angle at 4022.75. This makes 4022.75 to 4023.25 a possible resistance cluster. It may also be a trigger point for a rally into 4045.75.

A surge through the Fib level at 4045.75 could trigger a further rally into the next angle at 4070.75.

A new short-term range may have formed between 3927.75 and 4040.50. This makes 3984.00 to 3969.25 the main downside target. Additional support is an uptrending angle at 3975.75.

The index may be going through a transition period that may lead to a sideways trade today. A failure to take out 4023.25 to 4045.75 will form a secondary lower top, but holding 3984.00 to 3968.25 will form a potentially bullish secondary higher bottom. This issue may take a few days to work out. In the meantime, don’t be surprised by a choppy, two-sided trade.