E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Ready to Challenge 12767.75 to 12900.00

March E-mini NASDAQ-100 Index futures are leading the charge on Wall Street on Tuesday as buyers returned to the market in response to a dip in U.S. Treasury yields.

U.S. 10-year Treasury bond yields eased to 1.54%, 6 basis points lower than its highest level of the year reached on Monday. Higher yields tend to weigh on tech and growth stocks with lofty valuations, as they threaten to erode the value of their longer-term cash flows.

At 14:35 GMT, March E-mini NASDAQ-100 Index futures are trading 12641.25, up 307.75 or +2.50%.

The rally is being led partly by a jump in shares of Tesla, which is up about 4%. NASDAQ components Apple Inc., Amazon.com Inc, Facebook Inc and Microsoft jumped about 2% each shortly after the opening.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. The main trend will change to up on a trade through 13328.25. A move through 12207.25 will signal a resumption of the downtrend.

The main range is 10936.25 to 13900.25. Its retracement zone at 12418.25 to 12068.50 is support. This zone stopped the selling at 12207.25 last week.

The minor range is 13328.25 to 12207.25. Its retracement zone at 12767.75 to 12900.00 is the first upside target. Since the main trend is down, sellers could come in on a test of this area.

The short-term range is 13900.50 to 12207.25. Its retracement zone at 13054.00 to 13253.75 is the primary upside target.

Last year’s close at 12885.50 is another potential upside target. This could be the trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Tuesday will be determined by trader reaction to the main 50% level at 12418.25.

Bullish Scenario

A sustained move over 12418.25 will indicate the presence of buyers. This could lead to a labored rally due to the series of potential resistance levels at 12767.75, 12885.50 and 12900.00. Counter-trend sellers are going to come in on a test of this area. They’ll be trying to form a potentially bearish secondary lower top.

Buyers are going to try to take out 12900.00. Their primary objective is 13054.00 to 13253.75, where the process will start all over again.

Bearish Scenario

A sustained move under 12418.25 will signal the return of sellers. This could trigger another break into 12207.25 and 12068.50. The latter is a potential trigger point for an acceleration to the downside.

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