E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Gann Angle at 8573.75 Controlling Near-Term Direction
March E-mini NASDAQ-100 Index futures are called lower shortly before the cash market opening. The pre-market trade was uneventful. This could carry over into the regular session where traders are saying the extremely low volume could be the highlight of the day.
Traders are shrugging off the impeachment news as chances of a trial conviction in the Senate are low. Traders also showed a limited reaction to the U.S. Weekly Jobless Claims, which fell to 234,000 from 252,000 the week before. Economists were looking for a fall to 225,000.
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At 14:15 GMT, March E-mini NASDAQ-100 Index futures are trading 8617.25, down 3.50 or -0.04%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 8641.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 8189.25. This is highly unlikely, however, trades should watch for a closing price reversal top.
The minor trend is also up. A trade through 8319.50 will change the minor trend to down. This will also shift momentum to the downside.
The minor range is 8319.50 to 8641.25. Its retracement zone at 8480.25 to 8442.50 is the first downside target.
The main range is 8189.25 to 8641.25. Its retracement zone at 8641.25 is the second, and more important downside target.
Daily Technical Analysis
The low volume could be a drag on volatility on Thursday, making a breakout in either direction, difficult to trade.
If the bias and the volume is to the upside today then look for buyers to take a run at 8641.25. Taking out this level could trigger a breakout to the upside.
Taking out 8641.25 then turning lower for the session will put the index in a position to post a potentially bearish closing price reversal top.
If the bias and the volume is to the downside then look for a drive into the steep uptrending Gann angle at 8573.25. Look for a technical bounce on the first test of this angle.
If the selling is strong enough to take out 8573.25 then look for the start of a steep sell-off. The daily chart indicates the first important downside target is the short-term 50% level at 8480.25.