E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Struggling with 11550.75 – 11761.75 Retracement Zone

December E-mini NASDAQ-100 Index futures are trading nearly flat shortly after the opening on Tuesday as investors looked for signs that Washington policymakers were close to agreeing on more fiscal stimulus, while some of the biggest technology stocks in the index weakened.

At 15:03 GMT, December E-mini NASDAQ-100 Index futures are trading 11470.25, up 1.00 or +0.01%.

The early trade is a little tentative which suggests trader indecision. Investors could be sitting this one out early in the day as they await more details on the discussions over stimulus. Meanwhile, volume and volatility could be light because of Wednesday’s Fed minutes.

All eyes later in the day will be on an address by Federal Reserve Chair Jerome Powell at a virtual meeting of the National Association for Business Economics, where global central bankers are likely to present their plans about how much more they can do to prevent an economic depression.

Amazon.com Inc, Apple Inc, Facebook Inc and Google-owner Alphabet Inc, which have together dominated Wall Street’s recovery from its coronavirus-induced lows in March, fell between 0.4% and 0.7% in early trading.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, Friday’s closing price reversal top suggests momentum may be getting ready to shift to the downside.

A trade through 11604.75 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 11204.50 will confirm the chart pattern and trigger a shift in momentum to down.

The minor trend is up. A move through 11167.00 will change the minor trend to down. This will also confirm the shift in momentum.

The minor range is 11167.00 to 11604.75. Its 50% level at 11385.75 is potential support. Additional support is 11130.50.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is the primary upside target. This zone is controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to 11385.75.

Bullish Scenario

A sustained move over 11385.75 will indicate the presence of buyers. This could trigger a surge into 11550.75, followed by 11604.75. The latter is a potential trigger point for an acceleration to the upside with 11761.75 the main objective.

Bearish Scenario

A sustained move under 11385.75 will signal the presence of sellers. The first downside target is 11204.50. Taking out this level will change the momentum to down. This could trigger a further break into 11167.00, followed closely by 11130.50.

For a look at all of today’s economic events, check out our economic calendar.