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James Hyerczyk
E-mini NASDAQ-100 Index
E-mini NASDAQ-100 Index

December E-Mini NASDAQ-100 Index futures performed relatively well on Friday, posting a solid gain and putting the index in a position to challenge the all-time high at 7723.50. The market was supported all week by strong performances in Apple and Amazon. Traders should almost no concerns over the Fed rate hike.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7686.25 will indicate the buying is getting stronger. A move through 7723.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 7422.25.

The minor trend is also up. A trade through 7473.75 will change the minor trend to down. This will also shift the momentum to the downside.

The short-term range is 7422.25 to 7686.25. Its retracement zone at 7554.25 to 5423.00 is new support. Since the main trend is up, buyers are likely to come in on a test of this zone.

The main range is 7193.50 to 7723.50. Its retracement zone at 7458.50 to 7396.00 is the major support. This zone provided support on September7 at 7420.50 and on September 18 at 7422.25.

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Daily Swing Chart Technical Forecast

Based on the upside momentum and last week’s close at 7655.25, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to last week’s high at 7686.25.

Taking out 7686.25 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for a surge into 7723.50.

A failure to overcome 7686.25 or sustain a move over this level will indicate the presence of sellers. This could even lead to the formation of a closing price reversal top. If the selling pressure is strong enough to generate a sharp break then look for the move to extend into the short-term retracement zone at 7554.25 to 7523.00.

At current price levels, it’s all about momentum. The upside momentum will continue with a new contract high the next major target. If upside momentum fades then we’re likely to see a pullback into a support zone, but not necessarily a change in trend.

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