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James Hyerczyk
E-mini NASDAQ-100 Index

December E-mini NASDAQ-100 Index futures are trading sharply higher at the mid-session on Monday. Most of the gains occurred during the premarket session and shortly after the opening as traders continued to respond to last week’s U.S. Federal Reserve’s third rate cut of the year, optimism around a potential U.S.-China trade deal, solid jobs data and an impressive earnings season.

At 17:00 GMT, December E-mini NASDAQ-100 Index futures are at 8202.75, up 42.75 or +0.52%.

Daily December E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Friday’s high at 8168.00.

The nearest main bottom is 7474.25. A trade through this bottom will change the main trend to down. This is highly unlikely today.

Since there is no resistance and due to the prolonged move up in terms of price and time, the only pattern to watch for is a closing price reversal top. This chart pattern won’t indicate a change in trend, but it could be an early sign that the selling is greater than the buying at current price levels.

The minor trend is also up. A trade through 8020.50 will change the minor trend to down. This will also shift momentum to the downside.


Daily Technical Forecast

Based on the early price action and the current price at 8202.75, the direction of the December E-mini NASDAQ-100 Index the rest of the session on Monday is likely to be determined by trader reaction to the steep uptrending Gann angle at 8178.25. This angle, moving up a rate of 32 points per day, has been guiding the market higher since the 7474.25 main bottom on October 3.

Bullish Scenario

A sustained move over 8202.75 will indicate the presence of buyers. There is no resistance but watch for a closing price reversal top.

Bearish Scenario

A sustained move under 8202.75 will signal the presence of sellers. Crossing to the weak side of Friday’s close at 8160.25 will indicate the selling is getting stronger. This will also put the index in a position to post a potentially bearish closing price reversal top.

If confirmed, sellers could trigger the start of a 2 to 3 day correction, but not necessarily a change in trend. The first downside target is the minor bottom at 8020.50.

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