E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 16152.75, Weakens Under 15987.25

December E-mini NASDAQ-100 Index futures are little changed during Friday’s premarket session as investors brace for a report on U.S. inflation data due later in the day. Today’s early move follows yesterday’s profit-taking session that ended a three-day winning streak.

At 08:22 GMT, December E-mini NASDAQ-100 Index futures are trading 16169.25, up 20.50 or +0.13%. On Thursday, the Invesco QQQ Trust Series 1 (QQQ) ETF settled at $393.74, down $5.87 or -1.47%.

In economic news on Thursday, jobless claims data showed the labor market recovery remains strong. The Labor Department reported initial claims for unemployment insurance totaled 184,000, below the 211,000 estimated by economists surveyed by Dow Jones and the lowest reading since 1969.

At 13:30 GMT, traders expect the U.S. Labor Department’s Consumer Price Index (CPI) report to show a high reading, which could lead the Federal Reserve to hasten the taper of its $120-billion monthly bond-buying program.

Economists surveyed by Dow Jones expect a 0.7% gain for the month of November, which would translate to a year-over-year growth rate of 6.7%. If that is the case, it will mark the biggest move since June 1982.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher.

A trade through 16456.25 will change the main trend to up. A move through 15538.00 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through the minor top at 16436.75 will indicate the buying is getting stronger.

The short-term range is 16767.50 to 15538.00. The market is currently straddling its pivot at 16152.75.

The minor range is 15538.00 to 16436.75. Its pivot at 15987.25 is the nearest support.

The major support area is a cluster of levels at 15676.50, 15567.50, 15419.00 and 15284.50. Last week’s low at 15538.00 fell inside this support cluster.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to 16152.75.

Bullish Scenario

A sustained move over 16152.75 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to take a run at the minor top at 16436.75, followed by the main top at 16456.25.

Taking out 16456.25 will change the main trend to up. This could trigger an acceleration to the upside with 16767.50 the next major target.

Bearish Scenario

A sustained move under 16152.75 will signal the presence of sellers. This could trigger a quick break into 15987.25.

The pivot at 15987.25 is a potential trigger point for an acceleration to the downside. The first key downside targets are 15676.50, 15567.50 and 15538.00. Taking out 15538 will change the main trend to down.