E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 14609.75, Strenghtens Over 14684.50
December E-mini NASDAQ-100 Index futures are inching lower early Wednesday as investors prepare for the start of earnings season, a fresh consumer inflation report and the release of the Fed’s latest monetary policy meeting minutes.
At 06:47 GMT, December E-mini NASDAQ-100 Index futures are trading 14629.00, down 24.25 or -0.17%.
Heading into Wednesday, investors will be watching for September’s consumer inflation report, which is expected to have flared at the same rapid pace as August.
Economists expect to see a rise of 0.3%, or a 5.3% annualized rate, when the consumer price index is released Wednesday at 12:30 GMT. Excluding energy and food, CPI is forecast to be up 0.3% month-over-month or 4% annualized.
The Federal Open Market Committee will release the minutes from its September meeting at 18:00 GMT on Wednesday. Investors will be looking for clues about timelines surrounding the central bank’s planned taper for its bond-buying program.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 14367.75 will signal a resumption of the downtrend. A move through 15001.25 will change the main trend to up.
The minor range is 14367.75 to 15001.25. The index is currently testing its retracement zone at 14684.50 to 14609.75. Trader reaction to this area will set the tone on Wednesday. Aggressive counter-trend buyers are going to try to form a potentially bullish secondary higher bottom.
The short-term range is 15399.25 to 14367.75. Its 50% level at 14883.50 is potential resistance.
The main range is 15702.25 to 14367.75. If the main trend changes to up then its retracement zone at 15035.00 to 15192.50 will become the primary upside target.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to 14684.50 and 14609.75.
A sustained move over 14684.50 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into 14883.50.
A sustained move under 14609.75 will signal the presence of sellers. If this move creates enough downside momentum then look for a potential acceleration to the downside with 14367.75 the next likely target.
Taking out 14367.75 will indicate the selling pressure is getting stronger. This could trigger a break into a major retracement zone at 14308.50 to 13979.75. Buyers could come in on a test of this zone since this area represents value.