E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 8, 2018 Forecast

E-mini NASDAQ-100 Index futures are trading lower early Monday. The U.S. is on bank holiday and there are no major economic releases so we could see a choppy two-sided trade today. Furthermore, the Treasury market is closed. This could actually underpin the stock market since rapidly rising Treasury yields drove stocks sharply lower late last week.

At 0814 GMT, December E-mini NASDAQ-100 Index futures are trading 7409.00, down 27.00, or -0.36%.

 

Daly Technical Analysis

The main trend is down according to the daily swing chart. A trade through 7347.00 will signal a resumption of the downtrend. The next target is the main bottom at 7343.25. The major bottom is 7193.50.

The main range is 7193.50 to 7728.75. The market is currently straddling its retracement zone at 7461.25 to 7398.00. This zone is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 7462.00 and the 61.8% level at 7398.00.

A sustained move under 7461.25 will indicate the presence of sellers. This could pressure the index into the Fib level at 7398.00, followed closely by the uptrending Gann angle at 7389.50.

A trade through 7389.50 could trigger a hard break into last week’s low at 7347.00. If this price fails then look for the selling to possibly extend into a pair of uptrending Gann angles at 7291.50 and 7242.50. The latter is the last potential support angle before the 7193.50 main bottom.

If 7398.00 holds as support then look for a rally back to 7462.00. This is a potential trigger point for an acceleration into the steep downtrending Gann angle at 7568.75.

Basically, look for an upside bias on a sustained move over 7461.25 and for a downside bias on a sustained move under 7389.50.