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

December E-mini NASDAQ-100 Index futures are trading higher at the mid-session, but struggling. Volume is a little on the light side as well as volatility, suggesting buyers aren’t very comfortable buying strength at current price levels and may be willing to wait for a pullback into a value area.

At 15:36 GMT, December E-mini NASDAQ-100 Index futures are at 11509.75, up 39.75 or +0.35%.

The technology-driven index is giving up earlier gains as expectations of a coronavirus stimulus bill being passed fizzled after House Speaker Nancy Pelosi said there won’t be a standalone bill for additional aid for carriers without a larger coronavirus stimulus package.

Pelosi’s comments come two days after President Donald Trump halted talks for a national coronavirus package until after the election, but urged additional aid for the ailing airline sector.

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. This will make 11197.50 a new main bottom.

The minor trend is also up. A trade through 11197.50 will change the minor trend to down and shift momentum to the downside. It will be confirmed if sellers can take out 11167.00.

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

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

The second minor range is 10656.50 to 11604.75. Its 50% level at 11130.50 is another resistance level.

Short-Term Outlook

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the 50% level at 11550.75.

Bullish Scenario

A sustained move over 11550.75 will indicate the presence of buyers. The first target is the main top at 11604.75. Taking out this level could trigger an acceleration to the upside with the next target the Fibonacci level at 11761.75.

Bearish Scenario

A sustained move under 11550.50 will signal the presence of sellers. This could trigger a fast break into 11385.75. Watch for a technical bounce but if it fails then look for the selling to possibly extend into the support cluster at 11197.50, 11167.00 and 11130.50.