E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strong Upside Momentum Over 11761.25 Fib Level

December E-mini NASDAQ-100 Index futures are trading sharply higher on Monday as tech shares outperformed while investors monitored stimulus negotiations in Washington.

The rally is taking place despite the dimming of chances for another round of stimulus before the election. This suggests that investors are already looking beyond a short-term stimulus package and putting their money on a Joe Biden presidency and an even bigger financial aid package later.

At 19:29 GMT, December E-mini NASDAQ-100 Index futures are trading 12099.25, up 374.50 or +3.19%.

Leading the index higher is Apple Inc, which jumped 6% as investors looked ahead to a key event for the company. Facebook and Amazon advanced 5.3% and 5.2%, respectively. Netflix gained more than 1%, Alphabet popped 4.1% and Microsoft gained 3.5%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Friday’s high. The main trend will change to down on a trade through 11197.50.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11761.50 to 11550.50 is support. This zone is controlling the near-term direction of the index. Trading on the bullish side of this index will continue to give the index its strong upside bias.

Short-Term Outlook

The daily chart indicates there is plenty of room to the upside with the primary upside target the September 2 main top at 12444.75. Taking out this level means a new all-time high has been hit.

The first support is the Fibonacci level at 11761.50. Since the main trend is up, buyers are likely to come in on a test of this level. If it fails then look for the selling to possibly extend into the 50% level at 11550.50. This level has to hold as support or momentum will shift to the downside and the uptrend will be at risk. This 50% level is the last potential support before the 11197.50 main bottom.