E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 11, 2018 Forecast

E-mini NASDAQ-100 Index futures are under pressure again on Thursday. This technology-based index is driving the price action in the other major indexes especially the S&P 500 Index because of overlapping stocks.  If there is going to be a short-term bottom today across the board then it’s likely to start with the NASDAQ-100 or NASDAQ Composite.

At 0939 GMT, the December E-mini NASDAQ-100 Index futures contract is trading 6965.00, down 67.00 or -0.95%.

 E-mini NASDAQ-100 Index
Weekly December E-mini NASDAQ-100 Index

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart. The trend turned down on Wednesday when sellers took out 7193.50. It was reaffirmed earlier today when 6986.50 was violated.

The first main range is 6385.25 to 7728.75. Its retracement zone at 7057.00 to 6989.50 is currently being tested.

The second main range is 5916.75 to 7728.75. This is also the contract range. Its retracement zone at 6822.75 to 6609.00 is currently being tested.

Combining the two retracement zones makes 6898.50 to 6822.75 the primary downside target. We’re looking for value buyers to step in on a test of this zone.

Weekly Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index the rest of the week is likely to be determined by trader reaction to the value zone at 6898.50 to 6822.75.

A sustained move over 6898.50 will indicate the presence of buyers. If this move can generate enough upside momentum then look for buyers to make a run at 7057.00. Overtaking this level could trigger an acceleration to the upside.

A sustained move under 6898.50 will signal the presence of sellers. This could drive the index into 6822.75. The weekly chart starts to open up to the downside under this level with 6609.00 the next major downside target.

Basically, look for an upside bias to develop on a sustained move over 7057.00 and a downside bias on a sustained move under 6822.75. Trading in between these levels will create choppy trading conditions.

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.