E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Choppy, Two-Sided Trade Between 6822.75 and 6609.00

December E-mini NASDAQ-100 Index futures are trading lower during the pre-market session. After being closed on Wednesday, sellers picked up where they left off on Tuesday, driving the index to its lowest level since November 27.

The market is being pressured by an inverted Treasury yield curve, which indicates expectations of weak future U.S. economic growth. Furthermore, concerns over U.S.-China relations rose early in the session following the arrest of the CFO of Chinese company Huawei.

At 0810 GMT, December NASDAQ-100 Index futures are trading 6713.00, down 90.25 or -1.33%.

E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend will change to up on a trade through 7139.00. A trade through 6449.50 will signal a resumption of the downtrend.

The market is currently trading inside a major retracement zone bounded by 6822.75 to 6609.00. It is also straddling a minor retracement zone at 6794.25 to 6713.00.

Daily Swing Chart Technical Forecast

Based on the earlier price action and the current price at 6713.00, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 6713.00.

Bullish Scenario

A sustained move over 6713.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into a pair of 50% levels at 6794.25 and 6822.75.

Taking out 6822.75 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 6713.00 will signal the presence of sellers. This could trigger a spike into 6609.00. If this price level fails as support then look for the selling to possibly extend into the main bottom at 6449.50, followed closely by the February 8 bottom at 6385.25.

Basically, look for a possible choppy, two-sided trade between 6794.25 and 6713.00. Watch for accelerations under 6609.00 and over 6822.75.

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.