E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Within Striking Distance of All-Time High

December E-mini NASDAQ-100 Index futures are trading nearly unchanged shortly before the cash market close on Friday as Wall Street took a breather after posting sharp gains earlier in the week.

Investors are watching the events unfold in Washington, but seem to feel comfortable with a Joe Biden victory. A contested election, however, could create a little uncertainty that could encourage position-trimming and profit-taking.

A potential gridlock in Congress, however, is helping to generate a little more support from the tech-heavy NASDAQ because it will ease worries about tighter regulations on U.S. companies.

At 19:43 GMT, December E-mini NASDAQ-100 Index futures are at 12082.50, up 6.00 or +0.05%.

Technology mega-caps including Apple Inc, Amazon.com Inc, Microsoft Corp and Facebook Inc fell after logging strong gains this week and were among the biggest drags on the NASDAQ.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum shifted to the upside with the formation of a closing price reversal bottom on November 2. A trade through 12249.00 will change the main trend to up. It will be reaffirmed on a breakout over the all-time high at 12444.75.

A move through 10942.25 will reaffirm the downtrend.

The minor trend is up. This confirms the shift in momentum. The minor trend changed to up on Friday when buyers took out the minor top at 12022.00.

The short-term range is 12249.00 to 10942.25. Its retracement zone at 11749.75 to 11585.50 is support. Trading on the strong side of this zone has put the index in a bullish position.

The major support is the retracement zone at 10917.50 to 10557.25.

Short-term Outlook

A sustained move over 11749.75 will indicate the presence of strong buyers. Falling below this level will signal that the buying is getting weaker.

Holding inside 11749.75 to 11595.50 will indicate trader indecision. Bullish traders could try to build a support base inside this zone.

A break under 11595.50 will indicate the presence of sellers. This could trigger a 50% to 61.8% retracement of the rally from 10942.25. We won’t know where this area is until the market stops going up.