E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Set Up for Breakout Over 11761.75

December E-mini NASDAQ-100 Index futures are setting up to close at or near their high for the session on Friday after President Donald Trump signaled support for a bigger coronavirus aid package. Trump’s comments came a day after the administration and Democrats sent mixed messages regarding future aid.

Despite the confusion, investors are operating under the notion that a new round of U.S. fiscal stimulus is coming. The uncertainty is surrounding whether it will happen before the election and how big it will be.

At 20:36 GMT, December E-mini NASDAQ-100 Index futures are trading 11731.50, up 192.50 or +1.67%.

The White House will take a $1.8 trillion coronavirus stimulus offer to Democrats as the sides work to strike a deal before the 2020 election, a source told CNBC.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Friday when buyers took out the last swing top at 11604.75. A trade through 11197.50 will change the main trend to down.

The short-term range is 12444.75 to 10656.50. It is currently testing its retracement zone at 11550.50 to 11761.75. This zone is controlling the near-term direction of the index.

Short-Term Outlook

Near the close of the session on Friday, December E-mini NASDAQ-100 Index futures are trading near the upper-end of the retracement zone at 11550.50 to 11761.75.

This zone is controlling the near-term direction of the index. Crossing to the bullish side of this zone could trigger an acceleration to the upside, or fuel a steady climb. In both cases, the main target is the September 2 main top at 12444.75.

The daily chart indicates there is plenty of room to the upside with. In other words, there is no resistance until 12444.75.

The inability to breakout over 11761.75 will signal the presence of sellers. This could lead to a pullback into the 50% level at 11550.75.

Although we’d like to see a sustained move over 11761.75 develop and lead to an eventual test of 12444.75, we’re not going to be too concerned if buyers decide to take their time and build a support base between 11761.75 and 11550.50. However, a failure to hold 11550.50 will raise some red flags since this will indicate the buying is weakening or the selling is getting stronger.