E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Reaction to 15567.50 – 15284.00 Sets Near-Term Tone

March E-mini NASDAQ-100 Index futures fell on Monday as mega-cap growth stocks extended their decline from the previous session, with Tesla Inc, Apple Inc, Meta Platforms and Microsoft Corp down between 1.4% and 2.2%.

Surging global infections from the new Omicron variant are raising concerns about the impact tighter restrictions could have on the global economy.

At 17:28 GMT, March E-mini NASDAQ-100 are trading15564.25, down 223.74 or -1.42%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $378.45, down $5.97 or -1.53%.

Denting sentiment further, U.S. Senator Joe Manchin said on Sunday that he would not support President Joe Biden’s $1.75 trillion domestic investment bill. Meanwhile, Goldman Sachs trimmed its quarterly U.S. GDP forecasts for 2022, in response to Manchin’s comments.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed early Monday when sellers took out the main bottom at 15547.25. A move through 16457.00 will change the main trend to up.

The main range is 14587.25 to 16768.00. Its retracement zone at 15567.25 to 15284.00 is currently being tested. This zone is controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Monday is likely to be determined by trader reaction to the main 50% level at 15567.50.

Bearish Scenario

A sustained move under 15567.25 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the main Fibonacci level at 15284.00, followed by another main bottom at 15279.75.

Bullish Scenario

A sustained move over 15567.50 will signal the presence of buyers. The first upside target is 15788.00. Overtaking this level will turn the index higher for the session. If this move creates enough upside momentum then look for the buying to possibly extend into 15975.00.