E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – May Have Found Support; 16152.75 New Upside Target

December E-mini NASDAQ-100 Index futures plunged on Friday, leaving it down for the week for its fifth-worst week of the year. A disappointing jobs report to end the week coupled with omicron concerns led to the Friday meltdown.

Additionally, earlier in the week Federal Reserve Chairman Jerome Powell indicated that the central bank is so concerned about escalating inflation pressures that it could begin tapering its bond buying designed to boost the economy.

On Friday, December E-mini NASDAQ-100 Index futures settled at 15717.75, down 270.75 or -1.72%. Invesco QQQ Trust Series 1 (QQQ) finished at 383.20, down $6.71 or -1.72%.

Shares of Apple Inc, Meta Platforms, Google-owner Alphabet Inc, Amazon.com Inc, Microsoft Corp, Nvidia Corp and Tesla Inc fell between 1.4% and 6.1% to weigh the most on the S&P 500.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 15538.00 will signal a resumption of the downtrend. A trade through 15273.75 will reaffirm the downtrend.

The minor trend is also down. A trade through 16121.75 will change the minor trend to up. This will shift momentum to the upside.

The key support is a series of retracement levels at 15676.50, 15567.50, 15419.00 and 15284.50. This area stopped the selling at 15538.00 on Friday.

The minor range is 16767.50 to 15538.00. Its 50% level at 16152.75 is the nearest upside target.

On the downside, the major target zone is 14841.25 to 14386.75.

Daily Swing Chart Technical Forecast

The direction of the December E-mini NASDAQ-100 Index early Monday is likely to be determined by trader reaction to 15676.50.

Bullish Scenario

A sustained move over 15676.50 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for a move into 15997.25, followed by 16152.75.

Although momentum shifts to up on a move through 16121.75, the trigger point for an acceleration to the upside is 16152.75. This could lead to a surge into 16456.25.

Bearish Scenario

A sustained move under 15676.50 will signal the presence of sellers. This could trigger a labored break into a series of potential support levels at 15567.50, 15538.00, 15419.00, 15284.50 and 15273.75.

The main bottom at 15273.75 is a potential trigger point for an acceleration to the downside with 14841.25 to 14386.50 the next major downside target zone. This area represents value so look for aggressive buyers to show up on a test of this area.