E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 11452.75 Set the Tone into the Close

December E-mini NASDAQ-100 Index futures are trading lower late in the session on Monday, but trying to claw back some of its earlier losses. The technology-based index is being pressured by a jump in coronavirus infections and the thought that fiscal stimulus negotiations have been shelved for the time being based on a stalemate between Washington policymakers.

At 07:15 GMT, December E-mini NASDAQ-100 Index futures are at 11422.25, down 241.25 or -2.07%.

Technology shares are putting in a mixed performance. Oracle and Microsoft fell after SAP, one of the biggest software companies in Europe, saw its shares plunge more than 20% after warning that businesses are holding back from spending; but it also cut its earnings and revenue estimates for 2020.

Meanwhile, some names that would benefit from people spending more time at home bucked the broader market’s negative trend. Amazon climbed 0.4% and Zoom Video gained 3.2%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through the nearest swing bottom at 11197.50. A move through 12249.00 reaffirms the uptrend.

The minor trend is down. This is controlling the momentum. The minor trend changes to up on a move thorough 12022.00. This move will shift momentum back to the upside.

The short-term range is 10656.50 to 12249.00. The Index is currently testing its retracement zone at 11452.75 to 11264.75. This zone is controlling the near-term direction of the index.

The intermediate retracement zone at 11550.75 to 11761.75 is a resistance area.

The major support is a retracement zone at 10917.50 to 10557.25.

Short-Term Outlook

The late session price action suggests the December E-mini NASDAQ-100 Index found support inside the retracement zone at 11452.75 to 11264.75.

The direction of the index into the close is likely to be determined by trader reaction to the 50% level at 11452.75.

A sustained move over 11452.75 will indicate the presence of buyers. The first upside target is the 50% level at 11550.75. This is a potential trigger point for an acceleration to the upside.

A sustained move under 11452.75 into the close could create the downside momentum needed to retest the intraday low at 11343.25, followed by the Fibonacci level at 11264.75. This is a potential trigger point for an acceleration to the downside.