Daily June E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Analysis – March 25, 2013

The June E-mini NASDAQ-100 Index is called higher this morning. The index surged when news hit the market that the European Union and Cypriot officials had reached a short-term agreement to avert a banking crisis in Cyprus. This news helped drive up demand for higher-risk assets.

The surge took place overnight so investors will be anxious to see if there will be a follow-through rally during the normal trading session. They want to make sure that there is conviction behind the move in the form of fresh buying. Short-covering will send a signal that the market is still overpriced and not attractive to buyers.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Technically, the June E-mini NASDAQ-100 surged to the upside after taking out a downtrending Gann angle at 2795.00. In addition, the market is trading on the bullish side of an uptrending Gann angle at 2788.25. This angle should provide support, direction and strength to the market.

The next upside target is the March 8 top at 2817.00. A move through this price will reaffirm the uptrend and make 2748.25 a new swing bottom and change in trend point.

In summary, there was a bullish tone in the market overnight, but investors will have to determine early whether this was because of new money or short-covering. New money means that investors are moving the markets with conviction. This will be a strong sign of higher markets to follow. 

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.

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