E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12710.50, Weakens Under 12588.25

March E-mini NASDAQ-100 Index futures are trading sharply lower just ahead of the cash market close on Monday. The index is also in a position to post a potentially bearish closing price reversal top. If confirmed with follow-through selling on Tuesday, then look for the start of a 2 to 3 day correction.

At 20:56 GMT, March E-mini NASDAQ-100 Index futures are trading 12682.25, down 203.25 or -1.58%.

In other news, Tesla Inc shares extended a meteoric rally to scale a record high after the electric-car maker reported better-than-expected vehicle deliveries in 2020.

Shares of FLIR Systems jumped about 20% after Teledyne Technologies Inc agreed to buy the thermal imaging camera supplier for $8 billion in cash and stock. Teledyne shares dropped about 8%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside with the formation of a closing price reversal top.

A trade through the intraday-high at 12959.75 will signal a resumption of the uptrend. The main trend will change to down on a move through 12461.00.

The first minor range is 12461.00 to 12959.75. Its 50% level comes in at 12710.50.

The second minor range is 12217.00 to 12959.75. Its 50% level is at 12588.25.

The short-term range is 10936.25 to 12959.75. If the main trend changes to down then its retracement zone at 11948.00 to 11709.25 will become the primary downside target area.

Short-Term Outlook

Trader reaction to the pair of 50% levels at 12588.25 and 12710.50 will determine the direction of the index into the close.

A close below 12885.50 will form a closing price reversal top. If confirmed on Tuesday then look for the start of a 2 to 3 day correction. Potential downside targets are the pair of main bottoms at 12461 and 12217, and the retracement zone at 11948.00 to 11709.25.

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