E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 11094.75, Strengthens Over 11222.00
December E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market opening. The selling pressure is increasing despite a better-than-expected Flash Manufacturing PMI report. Meanwhile, doubts about more U.S. fiscal stimulus and growing political uncertainty in the run-up to the November 3 presidential election have also kept investors from making big stock market bets.
At 14:17 GMT, December E-mini NASDAQ-100 Index futures are trading 11048.75, down 100.75 or -0.90%.
Additionally, Tesla Inc, another Wall Street darling this year, tumbled 5.4% after Chief Executive Officer Elon Musk failed to impress with his promise to cut electric vehicle costs at the much awaited “Battery Day” event on Tuesday.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trying to turn up following Monday’s closing price reversal bottom. A trade through 10656.50 will negate the chart pattern and signal a resumption of the downtrend. A move through 11539.00 will change the main trend to up.
The main range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is support. This zone stopped the selling at 10656.50 on Monday.
The minor range is 11539.00 to 10656.50. Its retracement zone at 11094.75 to 11199.75 stopped the rally earlier today.
The short-term range is 12444.75 to 10656.50. Overcoming 11199.75 could drive the index into its retracement zone at 11550.75 to 11761.75.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the minor retracement zone at 11094.75 to 11199.75.
A sustained move under 11094.75 will indicate the presence of sellers. This could trigger a move into 10917.50. If it fails then look for a possible acceleration into the main bottom at 10656.50 followed by the Fibonacci level at 10557.25.
A sustained move over 11199.75 will signal the presence of buyers. Taking out the intraday high at 11222.00 will indicate the buying is getting stronger. This is also the trigger point for an acceleration to the upside with the next potential targets 11539.00 to 11550.75.