E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Watch Reaction at 8050.25 Today

December E-mini NASDAQ-100 Index futures are trading slightly higher shortly after the cash market opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

There are many reasons for an investor to be indecisive. Valuation is the first that comes to mind. Perhaps investors believe the market is overbought and needs to pullback into a value area. The U.S.-China trade deal be setting up a “buy the rumor, sell the fact” situation. Perhaps investors are worried the Fed will be too hawkish in its monetary policy statement.

At 13:51 GMT, December E-mini NASDAQ-100 Index futures are at 8098.00, up 3.50 or +0.05%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8127.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 7583.25. Needless to say, the main trend is safe for now.

However, given the prolonged move up in terms of price and time, the December E-mini NASDAQ-100 Index is in the window of time for a potentially bearish closing price reversal top. There is no resistance, other than yesterday’s high at 8127.50, so we’re going to need a chart pattern to tell us if a top is being formed.

A closing price reversal top will form if buyers take out 8127.50 then close below yesterday’s close at 8094.75. This won’t change the trend, but it will be an early indication that the selling is greater than the buying at current price levels.

The minor trend is also up. A trade through 7810.25 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 7810.25 to 8127.50. Its 50% level or pivot at 7969.00 is the first downside target.

Daily Technical Forecast

Given the early price action and the current price at 8098.00, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to 8094.75.

Bullish Scenario

A sustained move over 8094.75 will indicate the presence of buyers. If this move is able to generate enough upside momentum then yesterday’s high at 8127.50 will become the primary upside target. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 8094.75 will signal the presence of sellers. The first potential downside target is the steep uptrending Gann angle at 8050.25. This is followed closely by yesterday’s low at 8048.00.

Taking out 8048.00 will heavy selling volume could trigger an acceleration to the downside with the next target the 50% level at 7969.00.