E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 19, 2016 Forecast

December E-mini NASDAQ-100 Index futures are called lower based on the pre-market trade. Concerns over earnings reports and today’s economic releases including Housing Starts, Housing Permits and the Fed Beige Book, are helping to push the index lower. Additionally, San Francisco Fed President John Williams is scheduled to speak.


The main trend is down according to the daily swing chart. A trade through 4901.50 will turn the main trend to up. A move through 4754.50 will signal a resumption of the downtrend. Momentum turned up on Tuesday when buyers took out 4841.40.

The main range is 4625.25 to 4901.50. Its retracement zone at 4763.25 to 4730.75 is the primary downside target. This zone provided support last week when buyers came in to support the market at 4754.50.

The intermediate range is 4901.50 to 4754.50. Its retracement zone at 4828.00 to 4845.50 has been tested three out of the last four sessions. This zone is controlling the near-term direction of the market. Crossing to the strong side of 4845.50 will give the market an upside bias. A sustained move under 4828.00 will create a downside bias.

The short-term range is 4754.50 to 4856.75. Its 50% level or pivot is 4805.50. This price is the downside target today.

Combining the two retracement zones creates a key area at 4805.50 to 4828.00. This is no man’s land. Holding inside this area is likely to create choppy trading conditions.


Daily December E-mini NASDAQ-100 Index

Based on the current price at 4820.25 and the early price action, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 4818.75.

A sustained move over 4818.75 will indicate the presence of buyers. The next rally is likely to be labored because of potential resistance levels at 4828.00 and 4845.50.

The daily chart begins to open up over 4845.50. This could trigger an upside breakout into 4873.50 and 4887.50. The latter is the last potential resistance angle before the 4901.50 main top.

A sustained move under 4818.75 will signal the presence of sellers with the short-term pivot at 4805.50 the next target. Breaking this level could drive the index into 4786.50 and 4770.50.

Watch the price action and read the order flow at 4818.75 today. Trader reaction to this angle will tell us if the buying is getting stronger, or if the sellers are still in control.

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.