E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Could Test 10917.50 – 10557.25 Retracement Zone

December E-mini NASDAQ-100 Index futures are trading lower at the mid-session after giving up earlier gains. Tech stocks spearheaded gains before the cash market opening amid volatile trading as investors sized up better-than-expected earnings from Peloton and Oracle. But like Thursday’s price action, buyers gave up on the rally and the tech driven index turned lower for the session.

The futures contract is poised to post another week of losses for investors. In fact, all three major indexes – S&P 500, Dow and NASDAQ Composite – are on track to record back-to-back weekly losses for the first time since early March, when the COVID-19 pandemic was front and center in investors’ minds.

At 16:20 GMT, December E-mini NASDAQ-100 Index futures are at 11118.50, down 47.00 or -0.42%.

Peloton surged on Friday after the fitness company cruised to its first quarterly profit on the back of increased spending on its bikes and treadmills during the COVID-19 pandemic. Oracle also posted a strong quarter of earnings growth, surpassing analyst expectations thanks to increased demand for its cloud services.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 10833.00 will change the main trend to down. A move through 12444.75 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 11554.00 will change the minor trend to up. A move through the minor bottom at 10924.75 will indicate the selling is getting stronger, putting the market in a position to test the main bottom.

The minor range is 10924.75 to 11554.00. Its 50% level or pivot at 11239.50 is controlling the direction of the market on Friday.

The intermediate range is 9390.50 to 12444.75. Its retracement zone at 10917.50 to 10557.25 is the nearest support zone.

The short-term range is 12444.75 to 10924.75. Its retracement zone at 11684.75 to 11864.25 is a potential upside target.

Short-Term Outlook

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the pivot at 11239.50.

Bearish Scenario

A sustained move under 11239.50 will indicate the presence of sellers. If this creates enough downside momentum then look for a drive into a cluster of potential support levels at 10924.75, 10917.50 and 10833.00.

If 10833.00 fails as support then look for the selling to possibly extend into the main Fibonacci level at 10557.25.

Bullish Scenario

A sustained move over 11239.50 will signal the presence of buyers. If this move generates enough upside momentum then look for a rally into the minor top at 11554.00, followed by the short-term 50% level at 11684.75.

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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.