E-mini NASDAQ-100 Could Strengthen Over 14645.50

March E-mini NASDAQ-100 Index futures are trading higher late in the session on Tuesday, fueled by the easing of tensions over a potential invasion of Ukraine by Russia. All three major indexes were sharply higher, with tech and tech-adjacent stocks providing the biggest boost.

Geopolitical heat was turned down a notch after Russia said it had withdrawn some of its troops from the Ukraine border, prompting a jump in bullish sentiment. The announcement received guarded responses, and the United States and NATO said they had yet to see evidence of drawdown. Nonetheless, the headline was enough to bring in buyers.

At 20:37 GMT, March E-mini NASDAQ-100 Index futures are trading 14534.50, up 281.50 or +1.98%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $354.58, up $7.09 or +2.04%.

On the economic front, a report from the Labor Department showed producer prices surged in January at twice the expected rate, reinforcing economist expectations that the Federal Reserve will take on stubbornly persistent inflation by aggressively hiking key interest rates.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside on Tuesday following the confirmation of yesterday’s closing price reversal bottom.

A trade through 15260.00 will change the main trend to up. A move through 14031 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend is also down. A trade through 15068 will change the minor trend to up. This will confirm the shift in momentum.

The index is currently trading on the strong side of a long-term retracement zone at 14515.75 to 13984.25, making it support. This zone stopped the selling on Monday at 14031. Inside this zone is a minor Fibonacci level at 14229.50.

Another minor range is 15260.00 to 14031. Its 50% level at 14645.50 is the next upside target.

The main range is 16659.50 to 13706.00. Its retracement zone at 15182.75 to 15531.25 is the best upside target area. This zone is controlling the near-term direction of the index. Inside this range is the 15260.00 main top.

Short-Term Forecast

Buyers are trying to establish an elongated support zone between 14515.75 and 13984.25. A sustained move over 14645.50 will indicate the buying is getting stronger. If this is able to generate enough upside momentum then look for a potential acceleration to the upside with 15182.75 to 15260.00 the next likely target area.