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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Holding Intraday Pivot at 12625.25 into Close

By:
James Hyerczyk
Published: Dec 21, 2020, 21:04 UTC

Trader reaction to 12625.25 is likely to determine the direction of the March E-mini NASDAQ-100 Index into the close.

E-mini NASDAQ-100 Index

March E-mini NASDAQ-100 Index futures are trading lower late in the session on Monday as the start of the holiday-shortened week began with a thud as enthusiasm over a coronavirus stimulus deal gave way to worries over a viral new COVID strain in the U.K.

After a steep sell-off shortly after the opening, the tech-based index has clawed back more than half of its earlier losses. Some said the comeback rally was fueled by the thought that concerns over the new virus variant could be overblown. Others said the rebound was ignited after the Federal Reserve announced it will allow the banking industry to resume share buybacks in the first quarter of 2021.

At 20:49 GMT, March E-mini NASDAQ-100 Index futures are trading 12664.50, down 48.00 or -0.38%. This is up from a low of 12461.00.

Perhaps the best reason for the comeback was the news that law makers reached an agreement on a $900 billion relief package, which would provide direct payments and jobless aid to struggling Americans.

Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower following the confirmation of Friday’s closing price reversal top. A trade through 12789.75 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 12217.00.

The minor range is 12789.75 to 12461.00. Its 50% level at 12625.25 is intraday support.

The short-term range is 12217.00 to 12789.75. Its retracement zone at 12503.25 to 12435.75 is support. This zone stopped the selling at 12461.00 earlier in the session.

Daily Swing Chart Technical Forecast

Trader reaction to 12625.25 is likely to determine the direction of the March E-mini NASDAQ-100 Index into the close.

Bullish Scenario

A sustained move over 12625.25 will indicate the presence of buyers. If this move creates enough upside momentum then look for the late session rally to possibly extend into 12789.75. Taking out this level will signal a resumption of the uptrend.

Bearish Scenario

A sustained move under 12625.25 will signal the presence of sellers. This could lead to a retest of the support cluster at 12503.25, 12461.00 and 12435.75.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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