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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 8221.50 Pivot Should Set the Tone

James Hyerczyk

December E-mini NASDAQ-100 Index futures settled higher on Friday, but inside the previous day’s trading range. The price action suggests investor indecision and impending volatility.

After spiking higher on Thursday in reaction to a news report saying the United States and China had agreed to rollback tariffs, buyers were a little tentative on Friday after President Trump said he had not agreed to any tariff rollbacks. Although the market managed to close higher, the buying wasn’t really that strong.

On Friday, December E-mini NASDAQ-100 Index futures closed at 8257.25, up 26.75 or +0.32%.

Monday is a U.S. Federal holiday. The Treasury markets will be closed, but the stock exchanges will be open. However, we expect the trading volume to come in well-below average. Be careful chasing the index in either direction. It’s easy to get caught in bull and bear traps on low-volume days.

Daily December E-mini NASDAQ-100 Index
Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8282.25 will signal a resumption of the uptrend. The nearest main bottom is 7583.25. Taking out this level will change the main trend to down. This is highly unlikely but due to the prolonged move up in terms of price and time, investors should start watching for a closing price reversal top.

The minor trend is also up. A trade through 8161.00 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 8161.00 to 8282.25. Its 50% level or pivot at 8221.50 is a key level to watch on Monday.

The second minor range is 8020.50 to 8282.25. Its 50% level at 8151.25 is another potential support level.

Daily Swing Chart Technical Forecast

Based on Friday’s price action and the close at 8257.25, the direction of the December E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to the first minor pivot at 8221.50.

Bullish Scenario

A sustained move over 8221.50 will signal the presence of buyers. This could create the upside momentum needed to breakout over 8282.25.

Bearish Scenario

A sustained move under 8221.50 will indicate the presence of sellers. This could trigger a break into the minor bottom at 8161.00 and the second minor pivot at 8151.25.

The daily chart starts to open up to the downside under 8151.25 so don’t be surprised by an acceleration into a third minor pivot at 8046.25, followed closely by the minor bottom at 8020.50.

This article was originally posted on FX Empire