E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – September 29, 2017 Forecast

December E-mini NASDAQ-100 Index futures are trading flat to slightly better during the pre-market session. Yesterday, the index posted an inside move which indicates investor indecision and impending volatility.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 6018.25 will change the main trend to up and could send the index into the contract high at 6025.75. A move through 5842.00 will signal a resumption of the downtrend with 5784.50 the next major downside target.

The main range is 5784.50 to 6025.75. Its retracement zone is 5905.00 to 5876.50. Traders are treating this price as support. A sustained move over this zone will give the market an upside bias.

The short-term range is 6018.25 to 5842.00. Its retracement zone is 5930.00 to 5951.00. The index is currently trading inside this zone.

Trader reaction to the 50% level at 5930.00 and the 61.8% level at 5951.00 will tell us if the sellers or buyers are in control.

Daily Forecast

Based on Thursday’s close at 5938.50, the direction of the index today is likely to be determined by trader reaction to a downtrending angle at 5946.25.

A sustained move over 5946.25 will indicate the presence of buyer. This could lead to a test of the Fib level at 5951.00.

Taking out 5951.00 will tell us the buying is getting stronger with the next target angle dropping in at 5982.25.

A sustained move under 5946.25 will signal the presence of sellers. The first target is the 50% level at 5930.00.

Taking out 5930.00 could trigger a spike into the support cluster at 5906.00 to 5905.00. Look for an acceleration to the downside if 5905.00 fails as support. This could trigger a break into the next support cluster at 5876.50 to 5874.00.

If you’re a cautious trader then play the breakout over 5951.00 or the breakdown under 5930.00. Remember that volume has to be on your side with buying strength or selling weakness or the move will fail.