E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Closing Price Reversal Top Temporarily Stops Rally

March E-mini NASDAQ-100 Index futures posted a dramatic closing price reversal top on Wednesday after reaching an all-time high as tech stocks declined. The weakness was led by Apple, which fell 1.6 percent after Bernstein analyst Toni Sacconaghi predicted iPhone sales growth could be weak this spring. Shares of Facebook, Amazon and Google-parent Alphabet also traded lower.

Worries about further U.S. protectionist policies also gave investors jitters. Additionally, Treasury Secretary Mnuchin was touting a weaker U.S. Dollar.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. However, yesterday’s closing price reversal top indicates the selling may be greater than the buying at current price levels.

A trade through 7004.25 will negate the closing price reversal top while a move through yesterday’s low at 6888.25 will confirm the chart pattern.

The main range is 6383.25 to 7004.25. If there is a sell-off then its retracement zone at 6693.75 to 6620.50 will become the primary downside target.

Daily Swing Chart Forecast

The direction of the March E-mini NASDAQ-100 Index will be determined by trader reaction to 6888.25.

A sustained move over 6888.25 will indicate the presence of buyers. If this creates enough upside momentum then we could see a challenge of 7004.25.

A move through 6888.25 will confirm the closing price reversal top chart pattern. This could trigger the start of a 2 to 3 day correction with the main target coming in at 6693.75 to 6620.50.