E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – March 8, 2016 Forecast

March E-mini NASDAQ-100 Index futures finished lower on Monday, diverging from the E-mini S&P 500 Index which closed higher. This could be a sign that the technology sector of the market is overvalued.

The main trend is up according to the daily swing chart. The uptrend will resume on a breakout over 4357.75 and turn down on a trade through the swing bottom at 4180.25.

The main range is 4697.75 to 3862.25. Its retracement zone is 4280.00 to 4378.75. This zone appears to be controlling the longer-term direction of the market. Currently, the index is straddling the lower, or 50% level of the range. Trader reaction to this level will determine the direction of the market today.

A sustained move over 4280.00 will indicate the presence of buyers. This could create enough upside momentum to challenge the long-term downtrending angle at 4321.75. This angle has provided resistance four days in a row so it is very important to the structure of the market.

A breakout over 4321.75 will indicate that the buying is getting stronger. This could trigger a fast rally into the short-term uptrending angle at 4340.25. Overcoming this angle will put the index in a bullish position with the next target the main Fibonacci level at 4378.75.

A breakout over 4378.75 will put the index on the bullish side of the major retracement zone. The next upside target is another uptrending angle at 4406.25. Overcoming this angle will also put the index in an extremely bullish position.

A sustained move under 4280.00 will signal the presence of sellers. The first target is a short-term uptrending angle at 4260.25. This is followed by another angle at 4220.25. This is the last potential support angle before the 4180.25 main bottom.

Watch the price action and read the order flow at 4280.00 today. Trader reaction to this level will tell us if the bulls or the bears are in control.