E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 28, 2017 Forecast

March E-mini NASDAQ-100 Index futures are trading flat shortly before the cash market opening. The index is trading inside yesterday’s range which suggests investor indecision and impending volatility. The market is also in a position to challenge the last main top at 5361.25.

The main trend is up according to the daily swing chart. However, upside momentum has slowed considerably since the formation of the potentially bearish closing price reversal top at 5361.25 on February 23.

A trade through 5361.25 will negate the reversal top and signal a resumption of the uptrend.

A move through 5299.00 will turn the minor trend to down and signal that the selling pressure is strengthening. This could lead to a test of the next minor bottom at 5286.75.

Based on the current price at 5347.25, the direction of the market is likely to be determined by trader reaction to the downtrending angle at 5349.25.

A sustained move over 5349.25 will signal the presence of buyers. This could create the upside momentum needed to test the main top at 5361.25. This is the trigger point for an acceleration to the upside with 5387.25 the next target. Overtaking this angle will put the index in an extremely bullish position.

A failure at 5349.25 will indicate the presence of sellers. This could drive the index into 5337.25, followed by the pivot at 5330.00.

The daily chart starts to open up to the downside under 5330.00 with 5313.25 the next target. Crossing to the weak side of this angle could trigger further break into the minor bottom at 5299.00.

Watch the price action and read the order flow at 5349.25 all session. Trader reaction to this angle will set the tone for the day.