E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – In Position to Post Closing Price Reversal Top

December E-mini NASDAQ-100 Index futures are trading lower at the mid-session after hitting another record high earlier in the session. The tech-weighted index was supported shortly after the cash market opening by strong gains in Tesla and Meta Platforms, however, profit-takers hit the market as many investors took to the sidelines ahead of the Federal Reserve’s potential move to start paring pandemic-era support for the world’s largest economy.

At 17:52 GMT, December E-mini NASDAQ-100 Index futures are at 15815.25, down 23.25 or -0.15%.

In stock-related news, Tesla Inc rose 4.6% to a record high after it notched a trillion dollars in market capitalization last week, while Meta Platforms, formerly Facebook Inc, added 2.6% to provide the biggest boost to the NASDAQ Composite.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15914.75 will signal a resumption of the uptrend. A move through 15273.75 will change the main trend to down.

The minor range is 15273.75 to 15914.75. Its 50% level or pivot at 15594.25 is the first downside target and potential support level.

The short-term range is 14585.50 to 15914.75. If the main trend changes to down then its 50% level at 15172.25 will become the next potential downside target.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 15838.50.

Bullish Scenario

A sustained move over 15838.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the intraday high at 15914.75.

Bearish Scenario

A sustained move under 15838.50 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into the minor pivot at 15594.25.

Look for buyers on the first test of 15594.25. If it fails then look for the start of a steep break with the main bottom at 15273.75 the next target.