E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Sellers Targeting 15567.25 – 15284.00 Support

March E-mini NASDAQ-100 Index futures are down sharply at the mid-session on Tuesday as Big Tech stocks moved lower and new inflation data continued to show a sharp rise in prices.

The steep drop in technology stocks comes after the November reading for the producer price index showed a year-over-year increase of 9.6%, the fastest pace on record and above the 9.2% expected by economists, according to Dow Jones. The index rose 0.8% month over month, above the 0.5% expected.

At 18:22 GMT, March E-mini NASDAQ-100 Index futures are trading 15773.50, down 308.00 or -1.92%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $384.61, down $7.65 or -1.95%.

Tesla shares were among the biggest droppers on the S&P 500, falling 2.3% after CEO Elon Musk announced that he has sold another $906.5 million in shares. Microsoft was also a major drag on the market averages, falling more than 4%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 15547.25 will signal a resumption of the downtrend. A move through 16438.75 will change the main trend to up.

The minor range is 15547.25 to 16438.75. The market is currently trading on the weak side of its retracement zone at 15887.75 to 15993.00, making it resistance.

The short-term range is 16768.00 to 15547.25. Its retracement zone at 16157.75 to 16301.75 is additional resistance.

The main range is 14366.75 to 16768.00. Its retracement zone at 15567.25 to 15284.00 is the primary downside target. This area is controlling the near-term direction of the index. It stopped the selling at 15547.25 on December 3.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Tuesday is likely to be determined by trader reaction to 15887.75.

Bearish Scenario

A sustained move under 15887.75 will indicate the presence of sellers. If this continues to generate enough downside momentum then look for the selling to possibly extend the break into 15567.25 – 15547.25.

Taking out 15547.25 will reaffirm the downtrend. This could trigger an acceleration to the downside with the next target a support cluster at 15284.00 – 15279.75.

Bullish Scenario

A sustained move over 15887.80 will signal the return of buyers. This could trigger a fast move into 15993.00.

Overcoming 15993.00 late in the session will indicate the buying is getting stronger with the next target area 16157.75 to 16301.75.