E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 13266.50 to Sustain Upside Momentum

March E-mini NASDAQ-100 Index futures are trading sharply higher late Tuesday, hovering slightly below its all-time high as investors awaited big earnings reports after the closing bell, with tech giant Amazon and Alphabet set to release quarterly numbers.

One catalyst behind the rally is the easing of concerns about a speculative retail trading frenzy. Weakness in shares of GameStop and AMC drove this train of thought as investors took it as a sign that the speculative mania from retail traders is unwinding, which is healthy for the overall market and investor confidence.

At 20:00 GMT, March E-mini NASDAQ-100 Index futures are trading 13487.00, up 250.50 or 1.89%.

Meanwhile, investors continue to follow stimulus negotiations in Washington, after congressional Republicans made a counter off to President Joe Biden’s $1.9 trillion stimulus plan on Sunday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Momentum even shifted back to the upside with the confirmation of Monday’s closing price reversal bottom.

A trade through 13599.75 will signal a resumption of the uptrend after a four day setback. A move through 12727.25 will negate the closing price reversal bottom and change the main trend to down. A trade through the next main bottom at 12727.00 will reaffirm the downtrend.

The first short-term range is 13599.75 to 12727.25. The index is currently trading on the strong side of its retracement zone at 13266.50 to 13163.50, making it support.

Additional support levels are lined up at 13045.50 and 12908.25.

Short-Term Outlook

Look for the upside bias and the strong momentum to continue as long as the index remains above the short-term Fibonacci level at 13266.50.

Bullish Scenario

A sustained move over 13266.50 will indicate the presence of buyers. If this continues to generate enough upside momentum then look for a potential breakout over the record high at 13599.75.

Bearish Scenario

A sustained move under 13266.50 will indicate the buying is getting weaker or the selling stronger. This is likely to lead to a labored break with potential support coming in at 13163.50, 13045.50 and 12908.25.

The main bottom at 12727.00 is a potential trigger point for an acceleration to the downside with the major retracement zone at 12245.25 to 11936.50 the primary downside target and value zone.

For a look at all of today’s economic events, check out our economic calendar.