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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 nearly flat shortly before the cash market opening. Profit-taking and position-squaring ahead of the week-end and next week’s widely expected Fed rate hike may be helping to limit gains. A firmer U.S. Dollar is also pressuring stocks.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the closing price reversal top at 7627.00. The next upside target is the all-time high at 7723.50.

The trend will change to down when sellers take out 7422.25. This is followed closely by another main bottom at 7420.50.

The short-term range is 7723.50 to 7420.50. The market is currently trying to sustain a move over its retracement zone at 7607.75 to 7572.00. If successful, this zone will become support.

The main range is 7193.50 to 7723.50. Its retracement zone at 7458.50 to 7396.00 is major support.


Daily Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the Fibonacci level at 7607.75 and the downtrending Gann angle at 7603.50.

A sustained move over 7607.75 will indicate the presence of buyers. If this move creates enough upside momentum, we could see a move into the next downtrending Gann angle at 7663.50. We could see a technical bounce on the first test of this angle. However, overtaking the angle could trigger a surge into the next downtrending Gann angle at 7693.50. This is the last potential resistance angle before the 7723.50 main top.

A sustained move under 7603.50 will signal the presence of sellers. This could trigger a plunge into the 50% level at 7572.00. Since the main trend is up, buyers could come in on the first test of this level.

The daily chart indicates there is plenty of room to the downside under 7572.00. If sellers come in with conviction, we could see an acceleration to the downside with the next target the uptrending Gann angle coming in at 7497.50.

Basically, we’re looking for an upside bias to develop on a sustained move over 7607.75, and for a downside bias to begin on a sustained move under 7572.00.

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