E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Resistance Cluster Comes in at 16088.50 – 16130.00

March E-mini NASDAQ-100 Index futures are trading higher shortly after the mid-session on Tuesday as beaten-down big technology stocks bounced back from an Omicron-driven rout the previous session.

Mega-cap growth firms, including Tesla Inc, Microsoft Corp, Apple Inc, Amazon.com Inc, Meta Platforms and Alphabet Inc rose between 0.4% and 1.7% after taking a beating on Monday.

At 19:30 GMT, March E-mini NASDAQ-100 Index futures are trading 15942.75, up 321.50 or +2.06%. The Invesco QQQ Trust Series 1 ETF (QQQ) settled at $389.22, down $8.53 or +2.24%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 15492.00 will signal a resumption of the downtrend. Taking out 15279.75 will reaffirm the downtrend. A move through 16457.00 will change the main trend to up.

The main support is the retracement zone at 15567.25 to 15284.00. This value area stopped the selling at 15492.00 on Monday.

The minor range is 16457.00 to 15492.00. Its retracement zone at 15974.50 to 16088.50 is the first upside target.

The short-term range is 16768.00 to 15492.00. Its retracement zone at 16130.00 to 16280.50 is the next target area.

Short-Term Outlook

Tuesday’s strong rebound rally is impressive especially since it helped identify a major value (support) area at 15567.25 to 15284.00. It is controlling the near-term direction of the index.

However, a follow-through to the upside could prove to be a labored event with resistance a series of levels at 15974.50 to 16088.50 and 16130.00 to 16280.50.

The combination of these two zones makes 16088.50 to 16130.00 a key resistance cluster. Since the main trend is down, sellers could come in on a test of this area. They are going to try to form a potentially bearish secondary lower top that could lead to a continuation of the downtrend.