E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 25, 2018 Forecast

December E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market opening. Traders seem to be shrugging off concerns over trade and the political turmoil in Washington although these could become issues later in the session. The main focus today is on the Fed’s expected rate hike on Wednesday. It is helping to drive up demand for banking stocks. Although there are very few bank stocks in the index, it is helping to contribute to the overall “risk-on” scenario.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However momentum is trending lower with the formation of Friday’s closing price reversal top and subsequent confirmation on Monday. Yesterday’s strong rebound rally has put the index in a position to challenge 7637.50. A trade through this level will negate the closing price reversal top and signal a resumption of the uptrend.

A trade through 7422.25 will change the main trend to down.

The minor trend is also up. A trade through 7473.75 will change the minor trend to down.

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

The intermediate range is 7723.50 to 7420.50. Its retracement zone at 7572.00 to 7607.75 is resistance. This zone is currently being tested. Sellers are going to try to form a secondary lower top. Buyers are going to try to drive through this zone in an effort to challenge 7723.50.

The short-term range is 7422.25 to 7637.50. Its 50% level or pivot at 7529.75 is also 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 downtrending Gann angle at 7587.50.

A sustained move over 7587.50 will indicate the presence of buyers. Overcoming the Fibonacci level at 7607.75 will indicate the buying is getting stronger. This could trigger a surge into 7637.50.

Overtaking 7637.50 will reaffirm the uptrend. This is followed by a downtrending Gann angle at 7655.50. Look for a technical bounce on the first test of this angle. It is also the trigger point for an acceleration to the upside with the next target angle coming in at 7689.50. This is the last potential resistance angle before the 7723.50 main top.

A sustained move under 7587.50 will signal the presence of sellers. The first target is the 50% level at 7572.00. This price level is the trigger point for an acceleration to the downside with targets coming in at 7529.75 and 7513.50.

The longer-term uptrending Gann angle at 7513.50 is also the trigger point for an acceleration to the downside. If this angle fails then we could see a sharp break into 7458.50.