E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 8982.50 to 8910.75 Sets the Tone

March E-mini NASDAQ-100 Index futures are expected to open lower based on the pre-market trade. Sellers were lined up before the futures market opened, leading to a gap-lower opening that is still intact.

After following through to the downside shortly after the opening, the selling stalled as traders braced for the cash market opening. The catalyst behind the selling is fear of the unknown due to the uncertainty tied to China’s coronavirus.

At 13:22 GMT, March E-mini NASDAQ-100 Index futures are trading 8983.00, down 161.50 or -1.78%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending to the downside. The main trend will change to down on a trade through 8678.00. A move through 9287.25 will signal a resumption of the uptrend.

The minor trend is down. It turned down on Friday. This shifted momentum to the downside.

The short-term range is 8678.00 to 9287.25. Its retracement zone at 8982.50 to 8910.75 is controlling the near-term direction of the index. It is currently being tested.

The main range is 8189.25 to 9287.25. Its retracement zone at 8738.25 to 8608.75 is the primary downside target. Buyers could step in on a test of this zone.

Daily Technical Forecast

Based on the early price action and the current price at 8983.00, the direction of the March E-mini NASDAQ-100 Index futures contract the rest of the session on Monday is likely to be determined by trader reaction to the short-term 50% level at 8982.50.

Bearish Scenario

A sustained move under 8982.50 will indicate the presence of sellers. This could trigger a break into a 50% level at 8910.75, followed closely by an uptrending Gann angle at 8870.00.

Look for an acceleration to the downside if 8870.00 fails as support. This could trigger a break into a pair of uptrending Gann angles at 8765.25 and 8744.00, and the main 50% level at 8738.25.

If 8738.25 is taken out then look for the selling to extend into the main bottom at 8678.00, followed by the main Fibonacci level at 8608.75.

Bullish Scenario

A sustained move over 8982.50 will signal the presence of buyers. If this is able to generate enough upside momentum then look for a rally into a series of Gann angles at 9062.00, 8159.25 and 9223.25.