E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – COVID-19 Scare Sends Investors into Tech Stocks

December E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market close on Friday after hitting a record intraday higher earlier in the session.

Fear of a resurgence in COVID-19 infections in Europe as well as new lockdown measures in the region encouraged investors to buy technology shares or stocks in companies that will benefit from widespread lockdowns.

At 20:36 GMT, December E-mini NASDAQ-100 Index are at 16567.50, up 86.25 or +0.52%.

Shares of Apple are up more than 1% and Nvidia, which hit a record high Thursday after the company released upbeat results, is extending recent gains with a 4% boost.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 16628.50 will signal a resumption of the uptrend. A move through 15896.50 will change the main trend to down.

The minor range is 15896.50 to 16628.50. Its 50% level or pivot at 16262.50 is the first potential downside target.

The 50% support level at 15951.00 is the last potential support before the 15896.50 main bottom.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index into the close on Friday is likely to be determined by trader reaction to 16481.25.

Bullish Scenario

A sustained move over 16481.25 will indicate the presence of buyers. This could trigger a retest of 16628.50. This is also the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 16481.25 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the pivot at 16262.50.

A close under 16481.25 will form a daily closing price reversal top. If confirmed, this could trigger the start of a minimum 2 to 3 day correction.