E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – November 2, 2015 Forecast
December E-mini NASDAQ-100 Index futures posted a potentially bearish closing price reversal top on Friday. This chart pattern doesn’t mean the trend is getting ready to turn lower, but it could lead to the start of a 2 to 3 day correction.
The key will be the confirmation and the follow-through. During the premarket session, sellers took out 4636.00 confirming the closing price reversal top. Trader reaction to 4636.00 will determine the tone of the session.
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A sustained move under 4636.00 will indicate the presence of sellers. The daily chart indicates there is plenty of room to the downside with the next target a steep uptrending angle at 4525.50.
The main range is 4317.50 to 4690.25. Now that the closing price reversal top has been confirmed, its retracement zone at 4503.75 to 4459.75 becomes the primary downside target.
A sustained move over 4636.00 will signal the presence of buyers. The first resistance is the reversal top at 4690.25. This is followed by a steep uptrending angle at 4733.50.
Overtaking 4733.50 will negate the closing price reversal top. But overtaking and sustaining the move will put the index in an extremely strong position.
Watch the price action and read the order flow at 4636.00 today. Trader reaction to this price will tell us whether the bulls or the bears are in control.