E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 13598 Sets Tone into Close

March E-mini NASDAQ-100 index futures hit another record high on Monday as optimism grew that U.S. lawmakers will soon pass a COVID-19 aid package. The tech-weighted index was also boosted by shares of Tesla, which rose as bitcoin surged to a record high after the company revealed it had purchased $1.5 billion of the cryptocurrency and would soon accept it as a form of payment.

At 21:14 GMT, March E-mini NASDAQ-100 Index futures are trading 13678.75, up 80.75 or +0.59%.

Feeding the optimism were comments on Sunday by U.S. Treasury Secretary Janet Yellen, who said that if Congress approves the $1.9 trillion plan, the country would get back to full employment next year.

In other news, Congress on Friday approved budget plan that would allow a coronavirus relief bill to muscle through in the coming weeks without Republican support.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Monday when buyers took out Friday’s high. A trade through 12727.25 will change the main trend to down.

The minor trend is also up. A trade through 13345.25 will change the minor trend to down. This will shift momentum to the downside.

The new minor range is 13345.25 to 13693.00. Its 50% level at 13519.00 is new support. This level will move higher as the index moves up.

The short-term range is 12727.25 to 13693.00. Its retracement zone support is at 13210.00 to 13096.00.

Short-Term Outlook

Look for the intraday uptrend to continue as long as the market remains above Friday’s close at 13598.00.

Bullish Scenario

A sustained move over 13598.00 will indicate the presence of buyers. There are no upside targets or resistance.

Bearish Scenario

The inability to hold 13598.00 will signal the presence of sellers. A close under this level will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction but not necessarily a change in trend. The first downside target zone is 13210.00 to 13096.00.