E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 13680.25 to Sustain the Rally

March E-mini NASDAQ-100 Index futures are trading higher shortly after the opening. During the pre-market session the technology-based index hit another record high. The move was supported by positive earnings updates, a benign consumer inflation report and hopes for a massive stimulus package.

Late in the session at 19:00 GMT, investors will get the opportunity to react to a speech by Federal Reserve Chair Jerome Powell. He may address the pace of the economic rebound and the need for coronavirus relief.

At 14:30 GMT, March E-mini NASDAQ-100 Index futures are trading 13743.25, up 63.00 or +0.46%.

After a steady pre-market session, the index moved higher after data showed U.S. consumer prices rose moderately in January but underlying inflation remained benign as the COVID-19 pandemic continues to be a drag on the labor market and services industry.

In stock related news, Twitter Inc added about 9% in the pre-market after it beat analyst targets for quarterly sales and profit, and forecast a strong start to 2021 as ad spending rebounds from a rock bottom.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous day’s high.

A trade through 12727.25 will change the main trend to down. This is highly unlikely but the prolonged rally in terms of price and time has put the index inside the window of time for a potentially bearish closing price reversal top chart pattern.

This chart pattern won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.

The minor range is 13345.25 to 13769.25. Its 50% level at 13557.25 is the first support.

The main range is 13345.25 to 13769.25. Its retracement zone at 13248.25 to 13125.25 is a potential support zone.

Both retracement levels will move up as the index moves higher.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index is likely to be determined by trader reaction to yesterday’s close at 13680.25.

Bullish Scenario

A sustained move over 13680.25 will indicate the presence of buyers. This could trigger an acceleration to the upside since there is no actual resistance.

Bearish Scenario

A sustained move under 13680.25 will signal the presence of sellers. This could trigger an intraday break into 13557.25. If this fails then look for an even steeper decline.

A close under 13680.25 will form a closing price reversal top. If confirmed than look for a possible 2 to 3 day break with 13248.25 to 13125.25 the next major downside target.

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