E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Holding 13242.25 Fueling Bullish Tone

March E-mini NASDAQ-100 Index futures are trading at their intraday high at the mid-session as mega-cap technology stocks tried to regain lost ground following Wednesday’s sharp sell-off after fears eased around hedge funds selling off positions to cover a short squeeze.

Heavyweights including Microsoft Corp, Facebook Inc, Netflix Inc and Alphabet Inc led gains, after the stock indexes suffered their worst day in three months the previous session.

At 18:11 GMT, March E-mini NASDAQ-100 Index futures are at 13356.75, up 251.25 or +1.92%.

In other news, Robinhood and Interactive Brokers restricted trading in stocks that soared this week in a social media-driven trading frenzy that shook stock markets. This helped ease tensions on Wall Street and may have flipped professionals back into a buy mode.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside on Wednesday. A trade through 13599.75 will signal a resumption of the uptrend. The main trend will change to down on a move through 12727.00.

The minor trend is down. It turned down on Wednesday, shifting momentum to the downside. A trade through 12884.75 will indicate the selling is getting stronger. Taking out 13599.75 will shift momentum to the upside.

The index is currently being supported by a series of 50% levels at 13242.25, 13163.25, 13045.50 and 12908.25.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index futures contract into the close will be determined by trader reaction to the pivot at 13242.25.

Bullish Scenario

A sustained move over 13242.25 will indicate the presence of buyers. If this move continues to generate enough upside momentum then look for the rally to possibly extend into the record high at 13599.75.

Bearish Scenario

A sustained move under 13242.25 will signal the presence of sellers. This could lead to a labored break with potential downside targets lined up at 13163.25, 13045.50 and 12908.25.