E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12442.50, Weakens Under 12374.75

March E-mini NASDAQ-100 Index futures are trading higher late Thursday as investors looked for signs of progress in fiscal stimulus talks to buttress the economy after labor market data showed a jump in jobless claims.

The tech-based index opened lower on the heels of weekly initial jobless claims data that spiked by 137,000 to a seasonally adjusted 853,000, well above expectations for 725,000 and the highest level since mid-September, underscoring the need for fresh stimulus measures to support a flagging economy.

At 21:15 GMT, March E-mini NASDAQ-100 Index futures are at 12384.75, up 19.50 or +0.16%.

In stimulus news, the U.S. Senate was expected as early as Thursday to extend government funding by one week to give lawmakers time to work out a larger spending package and coronavirus relief, but House Speaker Nancy Pelosi raised the possibility talks could drag on through Christmas.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. Momentum shifted to the downside following Wednesday’s closing price reversal top and subsequent confirmation earlier today.

A move through 12667.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a move through 10936.25.

The minor trend is also up. A trade through 12082.00 will change the minor trend to down. This will confirm the shift in momentum to down.

The first minor range is 12082 to 12667.75. Its retracement zone at 12374.75 is currently being straddled.

The second minor range is 12667.75 to 12217.00. Its retracement zone at 12442.50 is resistance and a potential trigger point for a breakout to the upside.

The third minor range is 11496.75 to 12667.75. Its retracement zone at 12082.25 to 11994.00 is a potential downside target zone.

The short-term range is 10936.25 to 12667.75. Its retracement zone at 11802.00 to 11597.75 is a value zone.

Short-Term Outlook

The near-term direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to 12442.50 and 12374.75.

Bullish Scenario

A sustained move over 12442.50 will indicate the presence of buyers. If this move is able to generate enough upside momentum, the rally could extend into 12667.75.

Bearish Scenario

A sustained move under 12374.75 will signal the presence of sellers. This could trigger a retest of 12217.00. If this level is taken out then look for the selling to possibly extend into the support cluster formed by the 50% level at 12082.25 and the minor bottom at 12082.00.

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