Technical Analysis of E-mini NASDAQ-100 (NQ) Index Futures – The trend is down; 16075.75
March’s E-mini NASDAQ-100 index futures are trading lower on Tuesday after surrendering earlier gains. Another surge in US Treasury yields suggests that investors are worried about a rate hike earlier than expected by the Federal Reserve.
Investors are betting that the Fed will have to hike rates as early as March to fight an expected jump in inflation and a tighter job market.
US economic data may also influence prices, with the ISM Manufacturing PMI lower than expected and the JOLTS Job Openings report also falling below its estimate.
As of 3:38 p.m. GMT, the March E-mini NASDAQ-100 index futures are trading at 16,313.00, down 172.50 or -1.05%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $ 397.40, down 4.28% or -1.07%.
Tech-heavy stocks also weakened after a strong performance early in the session. Amazon.com is down 1.32%. Adobe is down 3.14%. NVIDIA Corp shares are down 3.66%.
Shares of Alphabet and Apple, which are up 0.11% and 0.04% respectively, are helping hold the index.
Technical analysis of the daily swing chart
The main trend is downward according to the daily swing chart. The trend reversed earlier in the session when the sellers exited 16292.00. The new main high is 16564.00.
The first area of potential support is a retracement area between 16280.50 and 16130.00.
The second potential support area is between 16075.75 and 15938.00. The latter is a potential trigger point for downward acceleration.
Technical forecasts of the daily swing chart
The direction of the E-mini NASDAQ-100 index from March to Tuesday’s close will likely be determined by the reaction of traders at 16,280.50.
A sustained move below 16280.50 will indicate the presence of sellers. This could trigger a downward acceleration with 16130.00 the next likely target.
If 16130.00 fails, look for the sell to possibly extend from 16075.75 to 15938.00. Look for new buyers when you first test this area because it represents value.
A sustained move above 16280.50 will signal buyers to come to defend the support area. This could trigger an intraday rebound to 16,475.75. Exceeding this level will indicate that the buy is strengthening with potential targets 16564.00, 16567.50 and 16659.50.