E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – December 26, 2017 Forecast

March E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. The index is being driven lower by a 2% drop in Apple stock. Volume is expected to be light today due to the extended holiday trade so we may see a few exaggerated moves. Many of the major players are also on the sidelines so there may not be a stopper in the market to prevent a steep sell-off.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top on December 19 and the subsequent confirmation. A trade through 6545.75 will negate the chart pattern and signal a resumption of the uptrend.

The main range is 6250.00 to 6545.75. Its retracement zone at 6397.75 to 6363.00 is the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the NASDAQ-100 Index is going to be determined by trader reaction to a pair of Gann angles at 6474.00 and 6481.75.

A sustained move under 6474.00 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with the first target the main 50% level at 6398.00.

Overtaking 6481.75 will indicate the presence of buyers. This move could generate the upside momentum needed to challenge the downtrending Gann angle at 6513.75.