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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading higher late Tuesday. However, since hitting an all-time high at 8248.00 earlier in the session, the buying has been fairly light, leading to a mostly sideways intraday range. The price action suggests the market is tired. Additionally, investors are beginning to question valuation, which is making them reluctant to chase the market higher at current price levels.

At 21:24 GMT, December E-mini NASDAQ-100 Index futures are trading 8229.50, up 14.00 or +0.17%.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed earlier in the session when buyers took out Monday’s high at 8233.75. A trade through this level late in the session will indicate the buying is getting stronger.

The nearest main bottom is at 7583.25. A trade through this bottom will change the main trend to down. This is highly unlikely, however, due to the prolonged move up in terms of price and time, the index is in the window of time to form a potentially bearish closing price reversal top. If confirmed, this chart pattern could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 8020.50 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 8020.50 to 8248.00. Its 50% level or pivot at 8134.25 is the first downside target. Since the main trend is up, buyers could come in on the first test of this level.

The second minor range is 7810.25 to 8248.00. Its pivot level at 8029.00 is the next potential downside target.


Daily Technical Forecast

Based on the early price action and the current price at 8229.50, the direction of the December E-mini NASDAQ-100 Index into the close on Tuesday is likely to be determined by trader reaction to yesterday’s close at 8215.75.

Bullish Scenario

A sustained move over 8215.75 will indicate the presence of buyers. If this creates enough upside momentum into the close then look for a retest of the intraday high at 8248.00. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 8215.75 will signal the presence of sellers. The first downside target is a steep uptrending Gann angle at 8208.25. Buyers could come in on the first test of this angle.

If sellers are able to take out 8208.25 then look for a potential acceleration to the downside with the next target the pivot at 8134.25.

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