E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Early Inside Move Suggests Investors Indecision

March E-mini NASDAQ-100 Index futures are trading flat in early morning trading on Monday as Democrat and Republican lawmakers finally managed to set aside differences and agreed to a coronavirus-relief deal hours before a government shutdown deadline.

In addition to the $900 billion fiscal stimulus package, Congress also passed a one-day spending bill to avoid a government shutdown that would have started at 12:01 a.m. ET (05:01 GMT) Monday. President Donald Trump signed the measure late Sunday evening, according to White House spokesman Judd Deere.

At 05:25 GMT, March E-mini NASDAQ-100 Index futures are trading 12756.25, up 43.75 or +0.34%.

In other news, Moderna is shipping its first batch of vaccine doses after receiving approval for emergence use from the FDA. Meanwhile, the vaccines by Pfizer and BioNTech are being distributed to front-line health care workers around the country.

Daily Swing Chart Technical Analysis

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

The minor trend is also up. If buyers take out 12789.75 then 12610.00 will become a new minor bottom. A trade through this level will change the minor trend to down and shift momentum to the downside.

The minor range is 12217.00 to 12789.75. Its retracement zone at 12503.25 to 12435.75 is the first downside target.

Daily Swing Chart Technical Forecast

The early inside move suggests investor indecision and impending volatility. The direction of the March E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 12789.75.

Bullish Scenario

A sustained move over 12789.75 will indicate the presence of buyers. There is no objective at this time.

Bearish Scenario

A sustained move under 12789.75 will signal the presence of sellers. This could trigger a break into 12610.00. If this low fails then look for the selling to possibly extend into 12503.25 to 12435.75.

Taking out 12435.75 could trigger an acceleration to the downside with 12217.00 the next likely downside target.

Closing Price Reversal Top Possibility

Taking out 12789.75 then closing lower for the session will form a potentially bearish closing price reversal top. If confirmed, this could lead to a 2 to 3 day counter-trend break.