E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weakens Under 16332.00, Strengthens Over 16434.75

December E-mini NASDAQ-100 Index futures are trading slightly lower late Wednesday after bargain-hunters helped the tech-weighted index recover most of its earlier sell-off. The price action coupled with below-average volume indicates short-sellers are squaring positions ahead of what could be a long U.S. holiday weekend.

At 19:41 GMT, December E-mini NASDAQ-100 Index futures are trading 16287.25, down 24.75 or -0.15%. The low of the session is 16102.00.

The tech-driven index has been under pressure all week after Jerome Powell’s nomination for a second term as Federal Reserve Chair boosted bets of a faster tightening of U.S. monetary policy. Technology shares are sensitive to rising interest rates as their value rests heavily on future earnings, which are discounted more deeply when rates go up.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the confirmation of the closing price reversal top on November 22.

A trade through 16767.50 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 15896.50 will change the main trend to down.

The short-term range is 15896.50 to 16767.50. The index is currently testing its pivot at 16332.00.

The minor range is 16767.50 to 16102.00. Its pivot is the next potential resistance at 16434.75.

On the downside, the nearest support is 16020.50. This is followed by another 50% level at 15676.50 and a short-term retracement zone at 15567.50 to 15284.50.

Daily Swing Chart Technical Forecast

The direction of the December E-Mini NASDAQ-100 Index into the close on Wednesday is likely to be determined by trader reaction to 16332.00.

Bullish Scenario

A sustained move over 16332.00 will indicate the presence of buyers. This could trigger a surge into 16434.75. Overtaking this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 16332.00 will signal the presence of sellers. If this creates enough downside momentum then look for a break into the intraday low at 16102, followed by the 50% level at 16020.50. This is the last potential support before the 15896.50 main bottom.