Yahoo Finance E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Look for Short-Covering Rally if Pelosi Says ‘No’ to Impeachment
December E-mini NASDAQ-100 Index futures are trading sharply lower at the mid-session on Tuesday, giving back its earlier gains, after House Speaker Nancy Pelosi said she will make an announcement on possibly impeaching President Donald Trump. An early session rally also weakened following disappointing consumer confidence data. Consumer confidence for September fell to 125.1 from 135.1 in August. Traders were looking for 133.5.
At 18:03 GMT, December E-mini NASDAQ-100 Index futures are trading 7712.50, down 138.00 or -1.77%.
Possible Late Session Rally
Keep in mind that the selling is in reaction to the announcement on possibly impeaching President Donald Trump. The Democrats did not announce they were impeaching the President.
Pelosi in the past considered it a bad idea to start impeachment proceedings. If she announces that the Democrats will not start the impeachment process then look for stocks to rally late in the day.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down when sellers took out the pair of bottoms at 7798.25 and 7764.00. The trend will change to up on a move through 7973.75.
The short-term range is 7390 to 8002.50. Its retracement zone at 7696.25 to 7624.00 is the first downside target. Since this zone represents value, buyers could come in on a test of this zone.
Daily Technical Forecast
Based on the early price action and the current price at 7712.50, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the short-term 50% level at 7696.25.
Bullish Scenario
A sustained move over 7696.25 will indicate the presence of buyers. Overcoming the uptrending Gann angle at 7710.00 will indicate the buying is getting stronger. This could trigger a quick rally into the steep downtrending Gann angle at 7781.75.
Overtaking 7781.75 could trigger an acceleration to the upside with the next target angles coming in at 7877.75 and 7925.75.
Bearish Scenario
A sustained move under 7696.25 will signal the selling is getting stronger. This could trigger a further break into the short-term Fibonacci level at 7624.00, followed by a pair of uptrending Gann angles at 7550.00 and 7470.00.
Overview
This is a news driven market. If Pelosi says no impeachment, expect a late session rally.
This article was originally posted on FX Empire
