E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Momentum Shifts to Down on Trade Through 13516.75

March E-mini NASDAQ-100 Index futures are inching lower early Thursday on relatively light volume. Nonetheless, the index is still on track to post a positive week at record levels although there are signs that the buying pressure is easing. Wednesday’s higher-high, lower-close suggests the selling may be greater than the buying at current price levels.

At 07:20 GMT, March E-mini NASDAQ-100 Index futures are trading 13708.25, down 22.75 or 0.17%.

Despite the need to catch its breath after a very impressive start to February, the technology-based index could grind higher on the hopes for a smooth economic reopening as well as additional COVID stimulus. However, there are indications that investors could be rotating out of the large-cap tech sector and into stocks that could benefit more from President Biden’s stimulus package.

The cash market NASDAQ Composite is currently up 1.2% this week and 7.3% for the month.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be getting ready to shift to the downside with the formation of the closing price reversal top on Wednesday.

A trade through 13769.25 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 13516.75 will confirm the potentially bearish chart pattern. This could trigger the start of a 2 to 3 day correction.

The minor trend will change to down on a trade through 13345.25. This will confirm the shift in momentum to down.

The minor range is 13345.25 to 13769.25. Its 50% level at 13557.25 is support.

The second minor range is 12727.25 to 13769.25. If momentum shifts to the downside then its retracement zone at 13248.25 to 13125.25 will become the first key target zone.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index on Friday is likely to be determined by the mid-point of Wednesday’s range at 13643.00.

Bullish Scenario

A sustained move over 13643.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a test of 13769.25. Taking out this level could trigger a breakout to the upside.

Bearish Scenario

A sustained move under 13643.00 will signal the presence of sellers. The first downside target is 13557.25, followed by 13516.75.

Taking out 13516.75 will confirm the closing price reversal top. This could trigger an acceleration to the downside with the next targets coming in at 13345.25 and 13248.25.

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