The March E-mini NASDAQ-100 Index is called higher on the opening. Monday’s sharp sell-off put the index in a position to break sharply today, but overnight buying in the large-cap indices triggered a turnaround in this technology-based index.
Much of yesterday’s break was fueled by a sharp drop in Apple (AAPL). This stock could control the direction of the NASDAQ today especially as it nears its 52-week low at $435.00. Today’s major earnings reports are not technology-based, putting more emphasis on the movement and direction of Apple.
Technically, the March E-mini NASDAQ-100 Index came dangerously close to taking out the important January 15 bottom at 2705.25. A trade through this price will turn the main trend to down. Although it may stop temporarily at another bottom at 2698.50, ultimately it should retrace to 2674.40 to 2652.10 before value-based buyers re-emerge. An uptrending Gann angle at 2676.00 is also a potential downside target.
The first resistance angle to watch is 2732.75. This is followed by a major pivot price at 2737.00. This price is actually controlling the direction of the market. Bearish traders are likely to defend a rally back into this level while bullish traders would like to see a breakout above it.