E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 11550.75 Upside Target, 11052.50 Downside Target

December E-mini NASDAQ-100 Index futures are trading lower late in the session on Tuesday as traders turned their attention to the first presidential debate, scheduled for 01:00 GMT. The price action suggests the absence of major players in the markets, and those that showed up were probably booking profits after Monday’s strong rally.

At 18:43 GMT, December E-mini NASDAQ-100 Index futures are trading 11355.50, down 39.25 or -0.34%.

In economic news, data showed U.S. consumer confidence rebounded more than expected in September as households’ views of the labor market improved.

Meanwhile, U.S. House Speaker Nancy Pelosi said she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin for about 50 minutes and making plans for further talks on Wednesday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, the chart pattern suggests we could be seeing a short-term shift in momentum. A late session rally through 11448.75 will signal a resumption of the uptrend. A move through the main top at 11539.00 will reaffirm the uptrend.

The main range is 12444.75 to 10656.50. Its retracement zone at 11550.75 to 11761.75 is the next target zone. Trader reaction to this zone will determine the near-term direction of the index.

Sellers are going to try to stop the rally inside this zone in an effort to form a secondary lower top. Buyers are going to try to take out 11761.75, setting the index up for a retest of the all-time high.

On the downside, the minor support is a 50% level at 11052.50, followed by a longer-term 50% level at 10917.50.

Short-Term Outlook

A higher-high, lower-close on Tuesday won’t change the trend to down, but it will leave traders guessing. Some traders are going to read the pattern as bearish with their objective 11952.50. Others are going to read it as a temporary pause, expecting the rally to continue over the near-term to at least 11550.75.