E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Record High Followed by Weak Close; Warning Sign?

December E-mini NASDAQ-100 Index futures are trading higher on Friday but weakening into the close. Earlier in the session, the tech-weighted index hit another record high on the back of stronger-than-expected U.S. Non-Farm Payrolls data.

Prices spiked to the upside after data showed job gains for the month of October totaled 531,000, higher than the 455,000 estimate provided by Reuters. The report also revised September’s disappointing number up to 312,000 job gains from 194,000 previously, and increased its August number by a similar amount.

At 20:04 GMT, December E-mini NASDAQ-100 Index futures are trading 16350.00, up 19.25 or +0.12%.

In stock related news, Peloton shares cratered more than 33% after the fitness platform and maker of interactive treadmills and exercise bikes reported a much larger loss than expected and cut its full-year outlook as fitness buffs headed back to the gym and away from at-home workouts. Additionally, late in the session, CNBC is reporting the company froze hiring across all departments effective immediately.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A late session trade through the intraday high at 16448.50 will signal a resumption of the uptrend. A move through 15273.75 will change the main trend to down.

The minor range is 15273.75 to 16448.50. Its 50% level at 15861.00 is the nearest support target. Additional support is 15517.00, followed by retracement zone support 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 Friday will be determined by trader reaction to 16330.75.

Bullish Scenario

A sustained move over 16330.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 16448.50.

Bearish Scenario

A sustained move under 16330.75 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the nearest pivot at 15861.00 over the near-term.

Side Notes

A close under 16330.75 will form a potentially bearish closing price reversal top. If confirmed on Monday then look for the start of a 2 to 3 day correction with the first target 15861.00, followed by 15517.00 and 15408.00.