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James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The market is trading inside yesterday’s range while straddling yesterday’s close. This suggests investor indecision and impending volatility.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 7723.50 on August 30. Another closing price reversal top was formed at 7627.00 on September 14.

A trade through 7420.50 will change the main trend to down. A move through 7627.00 will signal a resumption of the uptrend.

7627.00 is also a secondary lower top. This is further evidence that the short-sellers are in control.

The main range is 7193.50 to 7723.50. The market is currently testing its retracement zone at 7458.50 to 7396.00. This zone is also controlling the near-term direction of the index.


Daily Technical Forecast

Based on the early price action, the direction of the December E-mini S&P 500 Index is likely to be determined by trader reaction to a downtrending Gann angle at 7531.50.

A sustained move under 7531.50 will indicate the presence of sellers. This could trigger a break into an uptrending Gann angle at 7473.50. Watch for a technical bounce on the first test of this angle. If it fails then look for the selling to extend into 7458.50.

A break through 7458.50 should lead to a test of the pair of main bottoms at 7422.25 and 7420.50. If they fail as support then look for the selling to extend into the Fibonacci level at 7396.00.

A sustained move over 7531.50 will signal the presence of buyers. This could trigger a surge into the 50% level at 7572.00, followed by the Fib level at 7607.75, the main top at 7627.00 and the downtrending Gann angle at 7627.50.

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