The direction of the March E-mini NASDAQ-100 Index into the close on Wednesday will be determined by trader reaction to yesterday’s close at 12841.00.
March E-mini NASDAQ-100 Index futures are trading flat to slightly higher shortly after the mid-session on Wednesday, indicating that investors may have packed it in for the New Year’s holiday. Early in the session, the market showed promise as investors bet on a strong economic recovery in 2021 on the back of COVID-19 vaccine rollouts and hopes of bigger fiscal support.
However, half of that scenario died when efforts to boost the direct payments in the year-end coronavirus relief bill to $2,000 stalled Wednesday as Senate Republican leaders and Democrats appeared divided over whether to send more relief.
At 18:02 GMT, March E-mini NASDAQ-100 Index futures are at 12860.50, up 19.50 or +0.15%.
The main trend is up according to the daily swing chart. A trade through 12918.25 will signal a resumption of the uptrend. The main trend will change to down on a move through 12461.00.
The first minor range is 12461.00 to 12918.25. Its 50% level at 12689.50 is the first downside target and potential support.
The second minor range is 12217.00 to 12918.25. Its 50% level at 12567.50 is another potential downside target.
The direction of the March E-mini NASDAQ-100 Index into the close on Wednesday will be determined by trader reaction to yesterday’s close at 12841.00.
A sustained move over 12841.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a test of 12918.25. Taking out this level will be a sign of strength, but due to the low volume, don’t expect much of a follow-through move.
A sustained move under 12841.00 will signal the presence of sellers. Taking out 12808.25 will indicate the selling is getting stronger. Under normal trading conditions, we’d be looking for a sharp break into the first pivot at 12689.50.
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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.