E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12442.50, Weakens Under 12374.75
March E-mini NASDAQ-100 Index futures are trading higher at the mid-session, helped by a surge in shares of Apple, which rose 4%, after Nikkei reported the company will increase iPhone production by about 30% in the first half of 2021.
In other news, Moderna Inc’s shares fell 3.2%, even as U.S. Food and Drug Administration staff members did not raise any new concerns over data on the drugmaker’s COVID-19 vaccine. A report said the vaccine will gain emergency use approval on Friday.
Your capital is at risk
At 17:11 GMT, March E-mini NASDAQ-100 Index futures are at 12519.50, up 57.00 or +0.46%.
Progress toward a massive government spending bill and COVID-19 relief measures kept spirits highs, while investors awaited new economic cues from the Federal Reserve’s final meeting of the year.
House Speaker Nancy Pelosi invited her fellow congressional leaders to a meeting Tuesday to try to strike deals to fund the government and send another round of coronavirus relief, a source familiar with her outreach said.
The meeting would mark the most significant effort yet for the four leaders to come to bipartisan agreement on a package that could get through a divided Congress. It is unclear now whether all of the congressional leaders will agree to talk Tuesday.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on December 9.
A trade through 12667.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 12217.00.
The first minor range is 12667.75 to 12217.00. Its 50% level at 12442.25 is acting like support.
The second minor range is 12082 to 12667.75. Its 50% level at 12374.75 is additional support.
Daily Swing Chart Technical Forecast
The direction of the March E-mini NASDAQ-100 Index into the close will be determined by trader reaction to 12442.50 and 12374.75.
Bullish Scenario
A sustained move over 12442.50 will indicate the presence of buyers. If this continues to generate enough upside momentum then look for a near-term rally into 12667.75.
Bearish Scenario
A sustained move under 12374.75 will signal the presence of sellers. This could trigger a sharp break into the main bottom at 12217.00. Taking out this level will change the main trend to down. This could lead to a test of the retracement zone at 12082.25 to 11944.00.