E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 15200.75 Sets the Tone into the Close

December E-mini NASDAQ-100 Index futures are trading lower on Monday as investors rotated out of technology heavyweight stocks into shares of companies linked to economic growth amid increasing confidence in a recovery.

Mega-cap growth names Alphabet Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc and Apple Inc slipped between 1.2% and 2.9%. Chipmakers were down 1.3% as widening power shortages in China threatened to curb production.

At 17:47 GMT, December E-mini NASDAQ-100 Index futures are trading 15183.00, down 135.75 or -0.89%.

Investors moved into value and cyclical stocks from tech-heavy growth names after the Federal Reserve last week indicated it could begin unwinding its bond-buying program by as soon as November, and may raise interest rates in 2022.

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 14807.50 will change the main trend to down. A move through 15702.25 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through the new minor top at 15399.25 will shift momentum back to the upside.

The main range is 14437.00 to 15702.25. Its retracement zone at 15069.50 to 14920.25 is support. This area is controlling the near-term direction of the index.

The short-term range is 14699.00 to 15702.25. The index is currently straddling its 50% level at 15200.75.

The minor range is 15702.25 to 14807.50. Its retracement zone at 15255.00 to 15360.50 is resistance. This zone stopped the rally earlier today.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index into the close on Monday is likely to be determined by trader reaction to 15200.75.

Bullish Scenario

A sustained move over 15200.75 will indicate the presence of buyers. This could trigger a retest of 15255.00 to 15360.50.

Taking out the minor top at 15399.25 will indicate the buying is getting stronger. This could trigger a surge into 15532.50, which is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 15200.50 will signal the presence of sellers. This is a potential trigger point for an acceleration into the main retracement zone at 15069.50 to 14920.25.

For a look at all of today’s economic events, check out our economic calendar.

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.