E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12918.25, Weakens Under 12808.25

After a muted opening, March E-mini NASDAQ-100 Index futures are inching higher at the mid-session on Thursday. In the cash market, the NASDAQ Composite is set to record a 43% jump, its best yearly performance since 2009, benefiting from a surge in tech mega-caps such as Alphabet Inc, Microsoft Corp, Apple Inc, Facebook Inc and Netflix Inc.

At 16:05 GMT, March E-mini NASDAQ-100 Index futures are trading 12846.25, up 4.75 or +0.04%.

A favorable U.S. election outcome, large-scale vaccination campaigns, steady improvement in economic data and signs that a fiscal stimulus deal will be eventually reached in Washington are the tailwinds guiding the market higher at the end of the year.

Unfortunately there are some headwinds too. Major world economies continue to grapple with a jump in cases of COVID-19, with a highly infectious coronavirus variant – originally discovered in Britain – detected in California, a day after the first known U.S. case was documented in Colorado.

Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12918.25 will signal a resumption of the uptrend. The main trend changes to down on a move through 12461.00.

The minor range is 12461.00 to 12918.25. Its 50% level at 12689.50 is the first potential downside target, followed by another 50% level at 12567.50.

Daily Swing Chart Technical Forecast

The weak volume makes buying strength and selling weakness risky propositions. Nonetheless, that doesn’t mean aggressive traders won’t take a run at potential trigger points for breakouts.

An intraday upside bias could develop on a sustained move over 12918.25.

A downside bias could develop on a sustained move under 12808.25.

With the upside breakout, we don’t know how high it could go since there is no resistance. As far as the downside move is concerned, we could build a case for a break into 12689.50.

However, we’re more than likely to remain rangebound without a major surge in volume.

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

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.