E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Market Stable after Selling Volume Dries Up

March E-mini NASDAQ-100 Index futures are trading lower shortly after the opening. The market is being pressured by concerns over rising global interest rates and threats of inflation. Traders also believe the Fed may have to raise interest rates faster than previously expected.

End of the month profit-taking and position-squaring ahead of President Trump’s first State of the Union address late Tuesday as well as the Fed monetary policy announcement on Wednesday are also weighing on the index.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, yesterday’s closing price reversal top and today’s subsequent confirmation shifted momentum to the downside. The chart pattern could trigger a 2 to 3 day correction, or a test of the nearest retracement zone, but not necessarily a change in trend.

A trade through 7047.25 will negate the closing price reversal top and signal a resumption of the uptrend.

The main range is 6383.25 to 7047.25. If the selling pressure continues then look for a test of its retracement zone at 6715.25 to 6637.00. Since the main trend is up, buyers are likely to show up on a test of this area.

Daily Technical Forecast

The index is recovering after early weakness, suggesting the move was fueled by position-squaring rather than aggressive liquidation.

The index is currently trading between a pair of uptrending Gann angles which indicates investor indecision. If investors want to buy strength then they are going to go after the steep uptrending Gann angle at 7023.25. If they want to buy value then they are likely to test the next uptrending Gann angle at 6843.00.

Today’s selling stopped short of a minor bottom at 6888.25. This price is a possible trigger point for an acceleration to the downside.

Overtaking 7023.25 will indicate strength. This could generate the upside momentum to challenge 7047.25.

A sustained move under 7023.25 will signal the presence of sellers or the absence of buyers. This could drive the index through 6888.25 and into the uptrending Gann angle at 6843.00.

If 6843.00 is taken out with strong selling volume then look for the move to extend into the 50% level at 6715.25.