E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Holding 15766.50 Could Trigger Late Session Rally

March E-mini NASDAQ-100 Index futures are trading higher shortly after the mid-session on Thursday as investors try to bounce back following a massive tech sell-off in the previous session. Before today’s trading session began, the technology-driven index had fallen about 4% over the previous two trading sessions.

At 18:21 GMT, March E-mini NASDAQ-100 Index futures are at 15809.75, up 43.25 or +0.27%. The Invesco QQQ Trust Series 1 ETF (QQQ) is trading $384.93, up $0.64 or +0.17%.

Several tech stocks continued their slide, as investors continued rotating out of high valuation names. Tesla and Netflix fell over 2.0% each. Apple and Amazon also fell. Other megacap tech stocks rose, however. Alphabet added about 1%. Meta Platforms gained 3.16%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 15598.50 will signal a resumption of the downtrend. A move through the main bottom at 15492.00 will reaffirm the downtrend. A trade through 16564.00 will change the main trend to up.

On the downside, the major support is the retracement zone at 15567.25 to 15284.00. This area is also controlling the near-term direction of the index.

The minor range is 16659.50 to 15598.50. Its retracement zone at 16129.00 to 16254.25 is the nearest upside target. Since the main trend is down, sellers are likely to come in on a test of this area. They will be trying to form a potentially bearish secondary lower top.

Short-Term Outlook

Buyers came in earlier today at 15598.50, shortly ahead of the main 50% level at 15567.25.

Thursday’s session began with the index down seven days from its last major main top at 16659.50. This puts it inside the window of time for a closing price reversal top. A close over 15766.50 will form this chart pattern.

This chart pattern won’t change the trend to up, but if confirmed, it could trigger the start of a 2 to 3 day counter-trend rally with 16129.00 to 16254.25 the next potential upside target.

A close under 15786.50 will indicate the selling pressure is getting stronger. This could trigger a further break into the main retracement zone at 15567.25 to 15284.00. Aggressive counter-trend traders could come in on a test of this area so be careful selling weakness.

Basically, watch the price action and read the order flow at 15567.25 into the close.