The E-Mini NASDAQ 100 futures (NDZ13:CME) are trading within a very tight, two-day range that could offer the next breakout opportunity. The four-hour chart shows price has developed a 32-point range over the last two sessions, which spans from 3360.75 to 3392.75. This 32-point total falls well short of the current average two-day range of 57.50, which typically implies a solid breakout opportunity may be ahead.
Given that the NQ has experienced a major bull move over the last three weeks, continued overall strength should be assumed, until proven otherwise. And the level to watch that will help us prove otherwise is 3360.
The 3360 level has become a key pivot lately, as the market has responded to this level several times over the last week of trading. There is a confluence of support at 3360, which includes visual support, LVN support, and EMA wave support, among others.
Since the NQ has been extremely bullish as of late, a pullback to this support level should offer a solid buy opportunity. If price can break through recent highs at 3390, then there's a great shot at reaching key ADR weekly targets above, including 3424 (primary) and 3445.25 (secondary).
Otherwise, a violation through 3360 suggests an attempt to reach the primary downside weekly objective at 3327.75, with a shot to reach the full range ADR downside target at 3306.50.
As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.
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For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL. The NQ has rallied 275 points from the 3110.75 low, which occurred 14 sessions ago. While the NQ may be overbought, it's very tough to sell this market. However, a break and hold below 3360 could provide the early warning signs of a decline and opens the door to a retest of the key swing pivot below at 3320.
If, and this is a big IF, the NQ sees a selloff after the Fed announcement, it's very possible that price could retest the 3250 resistance level that was recently crossed. A successful retest of this level could offer a solid buying opportunity for an end-of-year run.
It all comes down to 3360 in the short term, which could have longer-term implications.