E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 16172.50 Sets Wednesday’s Early Tone

December E-mini NASDAQ-100 Index futures is trading higher late in the session on Tuesday. Although the volume seems to be a little lackluster, the tech-driven index remains within striking distance of its record high set at 16448.50 on November 5.

The market was generally supported by a broad-based rally in the stock market after a strong October retail sales report and better-than-expected third-quarter results from Home Depot and Walmart signaled the U.S. consumer is still ramping up spending even in the face of rising prices.

At 19:51 GMT, December E-mini NASDAQ-100 Index futures are trading 16314, up 126.25 or +0.78%.

In stock related news, Tesla shares rose 3%, recovering all of its losses from Monday, after CEO Elon Musk sold nearly $7 billion worth of Tesla stock last week. Still, the electric vehicle maker fell 15.4% that week, its worst since March 2020.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 16448.50 will signal a resumption of the uptrend. A move through 15896.50 will change the main trend to down.

The minor range is 16448.50 to 15896.50. The index is currently trading on the strong side of its 50% level at 16172.50, making it new support.

The short-term range is 15273.75 to 16448.50. Its 50% level falls slightly below the main bottom at 15861.00.

Additional support is another minor bottom at 15517.00 and a retracement zone at 15408.00 to 15162.50.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index into the close on Tuesday and early Wednesday is likely to be determined by trader reaction to 16172.50.

Bullish Scenario

A sustained move over 16172.50 will indicate the presence of buyers. If this move creates enough upside momentum, we could see a late/early session surge into 16448.50. This price is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 16172.50 will signal the presence of sellers. If this move generates enough downside momentum then look for an acceleration into the main bottom at 15896.50, followed by the pivot at 15861.00.

The 50% level at 15861.00 is also the trigger point for an acceleration into a pair of 50% levels at 15517.00 to 15408.00.