E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Late Session Rally Could Target 8944.75

March E-mini NASDAQ-100 Index futures are trading higher late in the session on Wednesday as buyers attempt to claw back yesterday’s steep decline. There seems to be a relative calm in the market after the Fed triggered a sharp reversal to the downside on Tuesday when it unexpectedly cut interest rates 50 basis points.

At 19:49 GMT, March E-mini NASDAQ-100 Index futures are trading 8829.50, up 247.00 or +2.88%.

Rate cuts tend to drive stocks higher, but the latest Fed move spooked investors because it signaled that policymakers may think the coronavirus impact on the economy will be worse than previously expected.

Stocks were supported on Wednesday by Joe Biden’s surprise win in the Super Tuesday primaries, and better-than-expected ISM Non-Manufacturing PMI and ADP private sector jobs reports.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trading higher since Friday’s closing price reversal bottom and Monday’s subsequent confirmation of the potentially bullish chart pattern.

The main trend will change to up on a trade through 9763.00. A move through 8126.25 will negate the chart pattern and signal a resumption of the downtrend.

The major support zone is 8628.50 to 8360.75. This area played a role in stopping the selling pressure on Friday.

The short-term range is 9763.00 to 8126.25. Its retracement zone at 8944.75 to 9137.75 is the primary upside target. This zone stopped the buying on Tuesday at 9002.50.

The new minor range is 8126.25 to 9002.50. Its retracement zone at 8564.25 to 8461.00 was tested earlier and stopped the selling at 8508.25.

Short-Term Forecast

If the upside momentum continues into the close then look for a late session surge into the 50% level at 8944.75, followed by yesterday’s high at 9002.50.

Overtaking 9002.50 will indicate the buying is getting stronger with the next target a resistance cluster at 9137.75 to 9187.00.

On the downside, support is a pair of 50% levels at 8628.50 and 8564.25.

Side Notes

March E-mini NASDAQ-100 Index futures are trapped between a pair of retracement zones at 8944.75 to 9137.75 and 8564.25 and 8461.00.

We could see sideways or two-sided trading over the next 2 to 3 days if the index remains between these areas.

Sellers are trying to form a potentially bearish secondary lower top. Buyers are trying to establish a potentially bullish secondary higher bottom.