E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 14883.50 Sets Thursday’s Early Tone

December E-mini NASDAQ-100 Index futures are trading higher late in the session on Wednesday. The strong rebound rally following an earlier loss has created enough upside momentum to carry over into Thursday’s session. The catalyst behind the rally was optimism about a debt ceiling deal.

At 20:42 GMT, December E-mini NASDAQ-100 Index futures are trading 14767.50, up 112.25 or +0.77%.

The NASDAQ Composite was down as much as 1.2% shortly after the opening, but reversed course on news that Senate Minority Leader Mitch McConnell told a closed meeting of Republicans that he would offer a short-term debt ceiling extension later Wednesday. That would help relieve some pressure on Congress to avoid a U.S. default currently expected on October 18.

Investors bought the dip in some key technology stocks. Microsoft rose 1.5%, Amazon gained nearly 1.3%, and Nvidia popped 1.2%. Alphabet also advanced 1.1%. All of the so-called FAANG stocks closed in the green.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 15399.25 will change the main trend to up. A move through 14367.75 will signal a resumption of the downtrend.

The main range is 12915 to 15702.25. Its retracement zone at 14308.50 to 13979.75 is major support.

The minor range is 15399.25 to 14367.75. Its 14993.50 is the nearest upside target. Look for sellers on the first test of this level. Overcoming it could trigger a surge to the upside.

The short-term range is 15702.25 to 14367.75. Its retracement zone at 15035.00 to 15192.50 is the primary upside target zone and the last potential resistance before the 15399.25 main top.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index early Thursday is likely to be determined by trader reaction to 14601.25.

Bullish Scenario

A sustained move over 14601.25 will indicate the presence of buyers. If this move creates enough upside momentum after the opening on Thursday then look for a surge into 14835.00, followed by 14883.50.

Watch for sellers on the first test of 14883.50. But also look for an acceleration into 15035.00 to 15192.50 if that level is taken out.

Bearish Scenario

A sustained move under 14601.25 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible retest of 14367.75 to 14308.50.