E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 11385.75 Sets Tone into Close

December E-mini NASDAQ-100 Index futures jumped on Monday, recovering from a sharp fall in the previous session as hints President Donald Trump could return to the White House and hopes of a new fiscal stimulus bill lifted investor sentiment.

Ten of the 11 major S&P indexes were up, with energy the worst performing sector this year, rising 1.7%. Materials and financials were also among the biggest gainers in morning trading.

At 16:33 GMT, December E-mini NASDAQ-100 Index futures are trading 11446.25, up 213.00 or +1.90%.

Heavyweight tech-related stocks including Apple Inc, Nvidia Corp, Amazon.com Inc and Microsoft Corp were up between 1.4% and 2.2% after weighing heavily on the NASDAQ on Friday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is attempting to turn lower following Friday’s closing price reversal top. 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 closing price reversal top and signal a shift in momentum.

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

The minor range is 11167.00 to 11604.75. Its 50% level at 11385.75 is currently being straddled.

The second minor range is 10656.50 to 11604.75. Its 50% level at 11130.50 is the next potential support.

The main support is the 50% level at 10917.50.

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 stopped the rally at 11604.75 on October 2. Trader reaction to this zone will determine the near-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% level at 11385.75.

Bullish Scenario

A sustained move over 11385.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the short-term 50% level at 11550.75, followed by the minor top at 11604.75. Taking out this level could trigger a surge into the short-term Fibonacci level at 11761.75.

Bearish Scenario

A sustained move under 11385.75 will signal the return of selling. If the selling generates enough downside momentum then look for the move to possibly extend into the minor bottom at 11167.00, followed closely by the 50% level at 11130.50. This is a potential trigger point for an acceleration to the downside with the next target the main 50% level at 10917.50.

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