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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 8, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 24, 2015, 23:00 UTC

December E-mini NASDAQ-100 Index futures closed sharply lower on Tuesday. It landed inside a major retracement zone bounded by 3969.25 to 3934.00, but the

Daily December E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures closed sharply lower on Tuesday. It landed inside a major retracement zone bounded by 3969.25 to 3934.00, but the downside momentum on the close suggests traders are going to go after the lower or Fibonacci level at 3934.00, or last week’s main bottom at 3927.75.

Daily December E-mini Russell 2000 Index

Daily December E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Taking out 3927.75 with conviction could trigger further weakness into the next angle at 3903.75, followed by the next potential support angle at 3861.75.

Now for the bullish side of the equation. 3969.25 to 3934.00 is a major retracement zone so buyers, or value-seekers may come in to defend this area. In addition, there are possible support angles at 3959.75, 3943.75 and 3935.75. All of these angles fall inside the retracement zone, validating their importance.

Besides holding the support points, overcoming the major 50% level at 3969.25 will also be a sign of buying. Overtaking the short-term pivot at 3984.25 will be the next key level to overtake. Finally, overcoming the steep uptrending angle at 3991.75 will also indicate buying. This could trigger a rally into the major downtrending angle at 4014.75.

Based on the weak close, look for an early downside bias. The tone of the day is likely to be determined by trader reaction to 3927.75. Traders may straddle the 3934.00 to 3927.75 area several times before finally deciding to move the market in one direction or another. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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