E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 9, 2018 Forecast

December E-mini NASDAQ-100 Index futures are expected to open lower, but well off its early lows. The index is currently trading on the weak side of a retracement zone, however, it’s also within striking distance of this zone. If the buying is strong enough to overcome the area then we could be looking a pretty strong short-covering rally today.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is in no position to change the trend to up, but the vertical break has put us in a position to form a potentially bullish closing price reversal bottom.

If the selling continues through 7286.50 then we could see a move into the next main bottom at 7193.50.

The main range is 7193.50 to 7728.75. Its retracement zone is 7398.00 to 7461.25. This zone is controlling the near-term direction of the index. Holding below will help sustain the downside bias. Crossing to the strong side of the zone will shift the bias to the upside.

If a short-term range develops between 7728.75 and 7193.50 then look for a retracement into 7507.75 to 7560.00.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Tuesday is likely to be determined by trader reaction to the price cluster at 7393.50 to 7398.00.

A sustained move under 7393.50 will indicate the presence of sellers. The first downside target angle comes in at 7293.50. The second target angle comes in at 7243.50. This is the last potential support angle before the 7193.50 main bottom.

Overcoming and sustaining a rally over 7398.00 will signal the return of buyers. If this move gains enough traction then look for the buying to extend into 7461.25. This is another trigger point for an acceleration into 7507.75 to 7560.00.