E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Big Test at 12751.00 into Close

March E-mini NASDAQ-100 Index futures are trading lower late in the session on Friday as investors try to claw back earlier losses in an effort to avoid a potentially bearish closing price reversal top. The tech-driven index fell throughout the session after touching a record high on uncertainty around a coronavirus stimulus deal.

At 21:06 GMT, March E-mini NASDAQ-100 Index futures are trading 12736.00, down 15.00 or -0.12%.

The U.S. Congress looked increasingly unlikely on Friday to meet a deadline to gree on $900 billion in fresh COVID-19 aid and instead may pass a third stopgap spending bill to keep the government from shutting down at midnight.

In stock related news, electric-car maker Tesla Inc rose 2.5% in heavy volume. It will become on Monday the most valuable company to be ever added to Wall Street’s main benchmark index.

Microsoft Corp was down 1.2% after it said it found malicious software in its systems related to a massive hacking campaign disclosed by U.S. officials this week.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 12789.75 will signal a resumption of the uptrend. The main trend changes to down on a move through 12217.00.

The minor trend is also up. A new minor top was formed at 12789.75.

The minor range is 12217.00 to 12789.75. Its retracement zone at 12503.25 to 12435.75 is potential support.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Friday is likely to be determined by trader reaction to 12751.00.

Bullish Scenario

A sustained move over 12751.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to make a run at 12789.75. Taking out this level late in the session could trigger a small surge to the upside.

Bearish Scenario

A sustained move under 12751.00 will signal the presence of sellers. It will also put the index in a position to form a closing price reversal top.

Side Notes

A close under 12751.00 will form a potentially bearish closing price reversal top. If confirmed on Monday this could trigger the start of a 2 to 3 day correction with 12503.25 to 12435.75 the next likely downside target.

We could see some wild price swings into the close due to the expiration of stock index futures, stock index options, stock options and single stock futures. This is known as quadruple witching.

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