E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trade Though 12019 Confirms Reversal Top

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December E-mini NASDAQ-100 Index futures are trading lower shortly before the close on Tuesday, putting it in a position to post a potentially bearish closing price reversal top. The chart pattern won’t indicate a change in trend, but if confirmed, it could trigger the start of a 2 to 3 day correction of the recent rally.

After confirming the uptrend early in the session on the hope of additional stimulus and a positive outlook for the third quarter earnings, the index turned lower for the day after Johnson & Johnson took a pause in its current vaccine study. The surprise news encouraged investors to trim long positions, fueling the intraday sell-off.

At 20:58 GMT, December E-mini NASDAQ-100 Index futures are trading 12079.00, down 19.25 or -0.16%.

In other news, Apple Inc slipped 1.1% ahead of a virtual event starting at 1700 GMT where it is widely expected to unveil four new iPhone models.

Meanwhile, Amazon.com Inc shares, which have already surged 86% this year, added 1% as the company began 48 hours of promotions as part of “Prime Day” in an early start to the holiday shopping season.

Daily December E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed early Tuesday. A trade through 12249.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 11197.50.

The short-term range is 12444.75 to 10656.50. Its retracement zone at 11761.50 to 11550.50 is support. This zone is controlling the near-term direction of the index. It is also the nearest support area.

Short-Term Forecast

On Tuesday, the December E-mini S&P 500 Index posted a potentially bearish closing price reversal top. A trade through 12019 will confirm the chart pattern. This won’t change the main trend to down, but it could trigger the start of a two to three day correction with 11723.25 the primary downside target.

A move through 12249.00 will negate the chart pattern and signal a resumption of the uptrend. This could create the upside momentum needed to challenge the all-time high at 12444.75.

For a look at all of today’s economic events, check out our  economic calendar.

This article was originally posted on FX Empire

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