E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Changes to Down on Trade Through 15734.00

March E-mini NASDAQ-100 Index futures are down sharply shortly before the cash market close on Thursday, dragged down by weakness among large tech stocks.

Thursday’s trading action was marked by sell-offs in some technology heavyweights, with Apple falling more than 4% and major semiconductor stocks like AMD and Nvidia dropping 5.8% and 7.3%, respectively. Shares of Adobe fell after the company’s forward guidance came in lower than analysts expected.

At 20:54 GMT, March E-mini NASDAQ-100 Index is trading 15876.50, down 409.75 or -2.52%. The Invesco QQQ Trust Series 1 ETF is at $386.69, down $10.36 or -2.61%.

The tech-weighted index was also pressured by declines in shares of Tesla Inc, Amazon Inc, and Microsoft, which fell between 2.0% and 4.4%.

Traders said the price action was fueled by a rotation toward more economically sensitive parts of the market after the Fed said on Wednesday it would raise interest rates three times in 2022. Higher interest rates tend to work against technology stocks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15734.00 will change the main trend to down. A move through 16457.00 will reaffirm the uptrend.

The minor range is 15547.25 to 16457.00. The index is currently trading on the weak side of its retracement zone at 15894.75 to 16002.25, making it resistance.

The short-term retracement zone at 16157.75 to 16301.75 is additional resistance.

The main retracement zone support comes in at 15567.25 to 15284.00. This area stopped the selling on December 3 at 15547.25.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close and early Friday is likely to be determined by trader reaction to 15894.75.

Bearish Scenario

A sustained move under 15894.75 will indicate the presence of sellers. This could trigger a quick break into the main bottom at 15734.00.

Taking out 15734.00 will change the main trend to down. This could trigger a further break into major 50% level at 15567.25, followed by another main bottom at 15547.25. This is a potential trigger point for an acceleration to the downside with the major Fibonacci level at 15284.00 the next likely target.

Bullish Scenario

A sustained move over 15895.00 will signal the presence of late session buyers. This could fuel a fast rally into 16002.25. This is a potential trigger point for an acceleration into 16157.75.