E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Minor Support Moves Up to 12658.25

March E-mini NASDAQ-100 Index futures closed at a record high on Monday as President Donald Trump’s signing of a long-awaited $2.3 trillion pandemic aid bill increased optimism for an economic recovery.

In a sudden reversal late on Sunday, Trump backed down from his threat to block the hard-fought bill, restoring unemployment benefits to millions of Americans and averting a federal government shutdown.

On Monday, March E-mini NASDAQ-100 Index futures settled at 12842.50, up 138.00 or 1.07%.

In other news, Tesla, Inc. edged up 0.3% after a report that the electric-car maker will start operations in India early next year. Advancing issues outnumbered declining ones on the NASDAQ by a 1.10-to-1 ratio.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12855.50 will signal a resumption of the uptrend. The main trend will change to down on a move through 12461.00.

The minor range is 12461.00 to 12855.50. Its 50% level at 12658.25 is the first support.

The second minor range is 12217.00 to 12855.50. Its pivot at 12536.25 is additional support.

Both support levels will move up as the index moves higher.

Daily Swing Chart Technical Forecast

With the market at an all-time high, the previous session’s close becomes very important. Therefore, trader reaction to 12842.50 will determine the direction of the March E-mini NASDAQ-100 Index on Tuesday.

Bullish Scenario

A sustained move over 12842.50 will indicate the presence of buyers. Taking out 12855.50 will signal a resumption of the uptrend. Due to the light volume, however, we don’t expect to see an acceleration to the upside.

Bearish Scenario

A sustained move under 12842.50 will signal the presence of sellers. If this move attracts enough sellers then look for the weakness to possibly extend into 12658.25. If this level fails then we could see a further break into 12536.25. This is the last potential support before the 12461.00 main bottom.

Side Notes

A higher-high, lower-close will form a potentially bearish closing price reversal top.

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