E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 1, 2016 Forecast

December E-mini NASDAQ-100 Index futures closed sharply lower on Wednesday as traders diverged from the other major indices. This is a sign of increasing selling pressure.

The main trend is up according to the daily swing chart; however, the two-day break from its recent top indicates that momentum has shifted to the downside. A trade through 4897.75 will signal a resumption of the uptrend.

The minor trend turned down on the trade through 4830.25. This is another sign that the selling is greater than the buying as current price levels.

The main range is 4558.50 to 4897.75. If the selling pressure continues then its retracement zone at 4728.00 to 4688.00 will become the primary downside target.

Based on the current price at 4814.00, the direction of the market today will be determined by trader reaction to the downtrending angle at 4833.75 and the uptrending angle at 4798.50.

Taking out 4798.50 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target the 50% level at 4728.00.

A sustained move over 4833.75 will indicate the presence of buyers. This may create enough upside momentum to challenge the next downtrending angle at 4865.75. This is followed by another downtrending angle at 4881.75.

Look for a downside bias today on a sustained move under 4798.50 and for an intraday upside bias to begin on a sustained move over 4833.75.

The way of least resistance is to the downside. Any rally is likely to be labored because of the numerous resistance angles.