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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading lower on Friday and in a position to finish lower for the week. After posting decent gains earlier in the session, the market turned south around mid-session after the Chinese trade delegation abruptly cancelled a trip to a U.S. farm and ended low-level talks.

At 20:05 GMT, December E-mini NASDAQ-100 Index futures are trading 7836.75, down 81.75 or 1.03%.

Chipmaker shares are the biggest drag on the index as sentiment turned negative. Optimistic investors were counting on these low level talks to lay the foundation for the higher-level talks in early October. However, today’s surprise turnaround served as a reminder to stock market investors just how difficult reaching a trade deal will be.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum appears to be shifting to the downside with the formation of a secondary lower top.

A trade through 7798.25 will change the main trend to down. A move through 8002.50 will signal a resumption of the uptrend.

The short-term range is 7764.00 to 8002.50. Its 50% level or pivot at 7883.25 is controlling the direction of the index on Friday.

The main range is 7390.00 to 8002.50. If the trend changes to down then its retracement zone at 7696.25 to 7624.00 will become the primary downside target.

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Daily Technical Forecast

Based on Friday’s price action and the current price at 7836.75, the direction of the December E-mini NASDAQ-100 Index into the close on Friday is likely to be determined by trader reaction to the short-term uptrending Gann angle at 7830.25.

Bearish Scenario

A sustained move under 7830.25 will indicate the presence of sellers. This could trigger a late session break into the main bottom at 7798.25. Taking out this level will change the main trend to down. This could trigger a further break into the next main bottom at 7764.00.

If 7764.00 fails then look for the selling to possibly extend into the main 50% level at 7696.25.

Bullish Scenario

Overcoming and sustaining a rally over 7830.25 will signal the return of buyers. This could trigger a late session rally into the short-term pivot at 7883.25.

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