December E-mini NASDAQ-100 Index futures reached a new record high on Friday and is currently in a position to post a new record close. The rally is being fueled by optimistic comments from two high-ranking White House officials who made comments suggesting an imminent trade deal between the United States and China.
At 21:43 GMT, December E-mini NASDAQ-100 Index futures are trading 8319.50, up 54.00 or +0.65%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous main top at 8300.25. The new main bottom is 8216.25. A trade through this level will change the main trend to down.
The minor trend is also up. The first minor retracement zone support is 8241.50. The second minor retracement zone support is 8171.25. The third minor retracement zone support is 8066.25. These levels will move higher if the index continues to progress to the upside.
Daily Technical Forecast
The current rally is being driven by news so value shouldn’t be an issue. If investors were worried about value, the market wouldn’t be grinding higher. It would be pulling back into support or a value zone where investors would be waiting for bullish news. Currently, investors don’t seem to be too afraid to buy new highs even on only the strength of a couple of headlines.
A pullback under the previous main top at 8300.25 will be the first sign of weakness. It will suggest the rally through this level is being fueled by buy stops rather than aggressive buying.
Since there is no true resistance, only upside targets, chart patterns will dictate the strength of the index. Higher-highs and higher-lows will indicate the presence of buyers. And a higher-high, lower-close will indicate the selling is greater than the buying at current price levels. If confirmed, this could lead to the start of a 2 to 3 day correction.
This article was originally posted on FX Empire