December E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. It is rebounding off of a sharply lower opening trade. This intraday upside momentum could carry over into today’s regular session opening.
The question that may be answered today is whether the return of the major institutions and banks leads to a rally into a new high or a correction into a value area.
The main trend is up according to the daily swing chart. A trade through 4884.75 will signal a resumption of the uptrend with the contract high at 4919.50 the next upside target.
A trade through 4830.25 will change the minor trend to down.
The main range is 4558.50 to 4884.75. Its retracement zone at 4721.50 to 4683.00 is the primary downside target.
Based on the current price at 4861.75, the direction of the index the rest of the session will be determined by trader reaction to the downtrending angle a 4871.50.
A sustained move over 4871.50 will indicate the presence of buyers. This is followed by last week’s high at 4884.75 and a long-term downtrending angle at 4895.50. This is the last potential resistance angle before the 4919.50 main top.
A sustained move under 4871.50 will signal the presence of sellers. The daily chart is open to the downside with the first target a minor bottom at 4830.25. This is followed closely by another downtrending angle at 4823.50.
The daily chart opens up to the downside under 4823.50 with the first major target, an uptrending angle at 4766.50, the next likely target.
Watch the price action and read the order flow at 4871.50 today. Trader reaction to this angle will set the tone for the day.