E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Changes to Down if 10924.00 Fails

December E-mini NASDAQ-100 Index futures closed lower on Wednesday. Leading the drag on the tech-heavy index were Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp fell between 0.5% and 1.3%.

The NASDAQ was under pressure early in the session, but turned positive after the Fed kept rates new zero and promised to keep them near there until inflation is on track to “moderately exceed” the U.S. central bank’s 2% inflation target “for some time.” However, the buying dried up when Fed Chairman Jerome Powell started his press conference and the index finished lower.

On Wednesday, December E-mini NASDAQ-100 Index futures settled at 11255.00, down 195.25 or -1.73%.

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. The main trend will change to down on a trade through 10924.00. A move through 12444.75 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 11539.00 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 12444.75 to 10924.00. Its retracement zone at 11684.50 to 11864.00 is the primary upside target.

The minor range is 10924.00 to 11539.00. Its retracement zone at 11231.00 to 11159.00 is the next downside target.

Daily Swing Chart Technical Forecast

The failure to reach the objective at 11684.50 to 11864.00 is a sign of weakness.

The next major decision for traders will come after a test of 11231.50 to 11159.00. Buyers could come in on the first test of this area. They will be trying to form a secondary higher bottom.

If 11159.00 fails, however, the selling could extend into a 50% level at 11087.75. If this fails then look for the selling to possibly extend into the main bottom at 10924.00, followed closely be another 50% level at 10917.50. We could see a technical bounce on the first test of this level.

If 10917.50 fails then look for the selling to possibly extend into 10833.00 and 10822.25.

Despite the recent shift in momentum to down, the sell-off could be labored because of the series of 50% levels.

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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.