E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Bearish Tone Could Lead to Test of 11130.50

December E-mini NASDAQ-100 Index futures are called lower on Friday after President Donald Trump tested positive for coronavirus. The president’s diagnosis added more uncertainty to the election, an event that was already weighing on the market and keeping traders on edge as they attempted to evaluate the possible outcomes.

At 12:52 GMT, December E-mini NASDAQ-100 Index futures are trading 11311.00, down 263.75 or -2.28%.

Shares of stocks tied to the economy reopening fell in premarket trading as the news highlighted the risk of a second wave of the coronavirus and raised fears that maybe lawmakers would slow the pace at which they relaxed coronavirus measures.

Also weighing on the sentiment was a worse-than-expected September jobs report. Nonfarm payroll rose by 661,000 in September, the Labor Department said Friday in the final jobs report before the November election. Economists surveyed by Dow Jones expected a jobs gain of 800,000. The unemployment rate fell to 7.9% last month.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 11604.75 will signal a resumption of the uptrend. The main trend will change to down on a move through 10656.50.

The minor trend is up. The new minor top is 11604.75. A trade through 11167.00 will change the minor trend to down. This will shift momentum to the downside.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is resistance. This zone stopped the buying earlier today at 11604.75.

The first minor range is 11167.00 to 11604.75. The index is now trading on the weak side of its pivot at 11386.00, making it resistance early Friday.

The second minor range is 10656.50 to 11604.75. Its 50% level at 11130.50 is the next downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index the rest of the session on Friday is likely to be determined by trader reaction to the minor pivot at 11386.00.

Bearish Scenario

A sustained move under 11386.00 will indicate the presence of sellers. If this move is able to create enough downside momentum then look for the selling to possibly extend into the minor bottom at 11167.00, followed by another pivot at 11130.50.

If 11130.50 fails then look for a possible acceleration to the downside with the main 50% level at 10917.50 the next likely downside target.

Bullish Scenario

A sustained move over 11386.00 will signal the presence of buyers. This could generate the momentum needed to challenge 11550.75, followed by the minor top at 11604.75. Taking out this level could lead to a test of the Fibonacci level at 11761.75.

For a look at all of today’s economic events, check out our economic calendar.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.