E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 11550.75, Weakens Under 11385.75

December E-mini NASDAQ-100 Index futures are trading higher late in the session on Wednesday following the release of the minutes of the last Federal Reserve monetary policy meeting. Prices have been firm throughout the session on hopes of at least a partial deal on more fiscal stimulus after U.S. President Donald Trump abruptly called off negotiations on a comprehensive bill in the previous session.

At 19:00 GMT, December E-mini NASDAQ-100 Index futures are trading 11494.50, up 220.75 or +1.96%.

The Fed minutes showed that Federal Reserve officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to minutes released Wednesday from the central bank’s September meeting.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 11604.75 will signal a resumption of the uptrend. A move through 10656.50 will signal a resumption of the downtrend.

The minor trend is also up. A trade through 11167.00 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 11167.00 to 11604.75. The market is currently trading on the strong side of its 50% level at 11385.75 after straddling it earlier today. This is intraday support.

The second minor range is 10656.50 to 11604.75. Its 50% level at 11130.50 is support. This is followed by the main support zone at 10917.50 to 10557.25.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is resistance. This zone stopped the buying at 11604.75 on October 2.

Short-Term Outlook

The near-term direction of the December E-mini NASDAQ-100 Index is going to be determined by trader reaction to the short-term retracement zone at 11550.75 to 11761.75.

Trading over 11385.75 late in the session and after the Fed minutes is helping to give the index a strong upside bias into the close. This puts the index in a position to overtake 11550.75 and 11604.75 at the close or early Thursday, setting up a potential test of 11761.75.

Trading below 11385.75 late in the session will indicate the presence of sellers. This could lead to a near-term correction into a cluster of potential support levels at 11197.50, 11167.00 and 11130.50.