E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Up, but Momentum Still Pointing Lower

December E-mini NASDAQ-100 Index futures are trading nearly flat as we enter the last hour of cash market trading on Wednesday. The market continued to be supported by surging Tesla Inc, which is going to be added to the S&P 500 Index in December. Meanwhile, the growing threat of a fresh round of economic lockdowns dampened the euphoria caused by potential vaccine breakthroughs.

At 20:20 GMT, December E-mini NASDAQ-100 Index futures are trading 11995.25, up 20.25 or +0.17%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on November 9.

A trade through 12408.75 will reaffirm the uptrend. The main trend will change to down on a move through the nearest main bottom at 10942.25.

The minor trend is also up. A new minor top was formed at 12096.25. The minor trend will change to down on a trade through the last minor bottom at 11503.25. This will shift momentum to the downside.

The first minor range is 12408.75 to 11503.25. The index is straddling its 50% level at 11955.75.

The second minor range is 11503.25 to 12096.25. Its 50% level at 11799.75 is the next potential downside target.

The short-term range is 10942.25 to 12408.75. Its retracement zone at 11675.50 to 11502.50 is the next potential downside target. It stopped the selling at 11503.25 on November 10. This zone is controlling the near-term direction of the index.

Short-Term Outlook

The direction of the December E-mini NASDAQ-100 Index into the close on Wednesday is likely to be determined by trader reaction to the first minor pivot at 11955.75.

Bullish Scenario

A sustained move over 11955.75 will indicate the presence of buyers. Taking out the minor top at 12096.25 could trigger an acceleration to the upside with the next major targets 12408.75 to 12444.75.

Bearish Scenario

A sustained move under 11955.75 will signal the presence of sellers. This could lead to a labored break with potential downside targets lined up at 11799.75, 11675.50 and 11502.50.