E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – October 5, 2018 Forecast

E-mini NASDAQ-100 Index futures are trading lower shortly before the release of the U.S. Non-Farm Payrolls report and the cash market opening. The index is posting an inside move which suggests investor indecision and impending volatility. On Thursday, the market fell sharply, but the selling stopped at the 50% level of the 2 month range.

At 1045 GMT, the December E-mini NASDAQ-100 Index futures contract is trading 7500.75, down 13.50 or -0.18%.

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

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 7422.25 will change the main trend to down. This is followed by main bottoms at 7420.25 and 7343.25. A trade through 7728.75 will signal a resumption of the uptrend.

The minor trend is down. It turned down on a trade through 7473.75 on Thursday. This also shifted momentum to the downside.

The main range is 7193.50 to 7728.75. Its retracement zone at 7461.00 to 7398.00 is the primary downside target. The upper or 50% level at 7461.00 stopped the selling on Thursday.

Trader reaction to 7461.00 to 7398.00 will determine the near-term direction of the index.

The minor range is 7422.25 to 7728.75. Its retracement zone at 7539.50 to 7575.50 is acting like resistance.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures market is likely to be determined by trader reaction to the uptrending Gann angle at 7474.25.

A sustained move over 7474.25 will indicate the presence of buyers. This could drive the index into the short-term Fib at 7539.50. Overcoming this level will indicate the buying is getting stronger. This could trigger a further rally into a 50% level at 7575.50, followed by a steep downtrending Gann angle at 7600.75.

A sustained move under 7474.25 will signal the presence of sellers. The first target is the 50% level at 7461.00.

The daily chart will open up to the downside under 7461.00. This could generate the downside momentum needed to challenge 7422.25 and 7420.50. This is followed by the Fib level at 7398.00 and an uptrending Gann angle at 7385.50.

The trigger point for an acceleration to the downside is 7385.50. If this angle is broken then look for a potential break into uptrending Gann angles at 7289.50 and 7241.00. The latter is the last potential support angle before the 7193.50 main bottom.

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.