E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12667.75, Weakens Under 12596.00

March E-mini NASDAQ-100 Index futures are trading higher at the mid-session on optimism over a fiscal stimulus package. Flows into heavyweight technology stocks pushed the futures contract to nearly a record high. The cash index reached a record high as the sector’s resilience through the virus outbreak spurred continued buying.

At 17:50 GMT, March E-mini NASDAQ-100 Index futures are trading 12636.00, up 40.00 or +0.32%.

In other news, data showed U.S. retail sales fell 1.1% last month from October, as new coronavirus infections and decreasing household income weighed on spending.

U.S. congressional leaders reported substantial progress toward a spending bill late on Tuesday, while a string of media reports suggested a deal to release more money into the economy was imminent.

Later today at 19:00 GMT, the Fed is expected to keep lending rates at near zero and signal their staying there for the foreseeable future at the conclusion of their meeting. Also in focus is an update on the central bank’s bond-buying program. The Fed’s overall tone is expected to be bearish.

In stock related news, Twitter Inc rose 3.2% after J.P. Morgan upgraded the stock to “overweight”. The brokerage firm expects the social media company to stage a significant rebound in online advertising following a pandemic-fueled decline.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12667.75 will reaffirm the uptrend. The main trend will change to down on a move through 12217.00.

The minor range is 12667.75 to 12217.00. Its 50% level at 12442.25 is the first downside target.

The second minor range is 12082.00 to 12667.75. Its 50% level at 12374.75 is another potential support level.

The third minor range is 11496.75 to 12667.75. If the main trend changes to down then its retracement zone at 12082.25 to 11944.00 will become a key value area.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Wednesday will be determined by trader reaction to 12667.75 and 12596.00.

Bullish Scenario

A sustained move over 12667.25 will indicate the presence of buyers. This could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 12596.00 will signal the presence of sellers. This could trigger a break into the pair of 50% levels at 12442.25 and 12374.75. If the latter fails then look for a potential acceleration to the downside with 12217.00 the next likely downside target.