E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Confirmed Closing Price Reversal Top

March E-mini NASDAQ-100 Index futures are trading lower at the mid-session on Wednesday. The market followed through to the downside early in the session, confirming the previous day’s closing price reversal top. This could trigger the start of a 2 to 3 day correction of about 50% of the last rally.

At 1729 GMT, the index is trading 6659.25, down 28.75 or -0.43%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may have shifted down with the formation of the potentially bearish closing price reversal top. A trade through 6707.25 will negate the chart pattern and signal a resumption of the uptrend.

The short-term range is 6383.25 to 6707.25. If the short-term correction continues, we could see a break into its retracement zone at 6545.25 to 6507.00.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session will be determined by trader reaction to the uptrending Gann angle at 6634.25. This angle provided support early in the session when the market reached its low at 6628.25.

A sustained move over 6634.25 will indicate the presence of buyers. This could create the upside momentum to trigger a retracement of the break from 6707.25. If the buying is strong enough, we could even see a test of the minor top at 6707.25.

A sustained move under 6634.25 will signal the presence of sellers. This could trigger a quick break into a steep uptrending Gann angle at 6607.25. Watch for a technical bounce on the first test of this angle.

The angle at 6607.25 is also the trigger point for an acceleration to the downside with 6545.25 the next major target.