E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 27, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. The index is diverging from the S&P 500 and the Dow. This could be a sign that investors are preparing for a near-term correction.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is starting to turn to the down side with the formation of the closing price reversal top at 5361.25 on February 23.

A trade through 5361.25 will negate the chart pattern and signal a resumption of the buying. A move through 5299.00 will signal that the selling pressure is increasing. It will also change the minor trend to down. The next target under this level is 5286.75.

The short-term range is 5361.25 to 5299.00. Its 50% level or pivot is 5330.00. It is controlling the short-term direction of the market.

The main range is 5083.25 to 5361.25. If there is a major correction then its retracement zone at 5222.25 to 5189.50 will become the primary downside target.

Forecast

Based on the current price at 5335.00 and the earlier price action, the direction of the NASDAQ-100 Index is likely to be determined by trader reaction to the downtrending angle at 5329.25 and the pivot at 5330.00.

Taking out 5329.25 will signal the presence of sellers. This could trigger an acceleration to the downside with 5299.00 the next target, followed by 5286.75. This is the trigger price for a steep break into 5222.25 over the near-term.

Holding above 5330.00 will indicate the presence of buyers. This could trigger a labored rally into resistance angles at 5345.25 and 5353.25. The latter is the last potential resistance angle before the 5361.25 main top.

Overtaking 5371.25 will put the index in an extremely bullish position.