E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Best Value Zone Target is 8628.50 to 8360.75

March E-mini NASDAQ-100 Index futures are trading slightly lower on Wednesday after hitting it lowest level since January 8 earlier in the session. The move actually erased all of this year’s gains. However, the index has clawed back most of those earlier losses and is now in a positon to possibly turn higher for the session.

At 11:16 GMT, March E-mini NASDAQ-100 Index futures are trading 8850.50, down 3.75 or -0.04%.

Fundamentally, the selling pressure is being fueled by concerns that the rapidly spreading coronavirus will spread throughout the world, leading to an eventual global recession.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Tuesday when sellers took out a pair of swing bottoms at 8966.00 and 8925.50. These were the last two main bottoms before the all-time high. The next two main bottom targets come in at 8678.00 and 8189.25.

The main range is 7494.00 to 9763.00. Its retracement zone at 8628.50 to 8360.75 is my primary downside target. This could also be a value zone so look for buyers to return on the first test of this area.

Daily Technical Forecast

The steep, four-day decline sets up a possible closing price reversal bottom. However, I would like the chart pattern better if it formed after testing 8628.50 to 8360.75.

Based on the early price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session on Wednesday is likely to be determined by trader reaction to Tuesday’s close at 8854.25.

Bearish Scenario

A sustained move under 8854.25 will indicate the presence of sellers. Taking out the intraday low at 8709.50 will indicate the selling is getting stronger. This could lead to an eventual test of the main 50% level at 8628.50.

Buyers could step in on the first test of 8628.50, but if it fails then look for the selling to possibly extend into the Fibonacci level at 8360.75. This is followed closely by an uptrending Gann angle at 8286.00.

Bullish Scenario

A sustained move over 8854.25 will signal the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into an uptrending Gann angle at 9078.00 and a steep downtrending Gann angle at 9251.00. Since the main trend is down, watch for sellers on a rebound into 9078.00 to 9251.00.