E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 9637.25, Weakens Under 9546.75

March E-mini NASDAQ-100 index futures are trading lower on Thursday after plunging from a record high hit earlier in the session. Shortly before the mid-session, a wave of selling hit the U.S. stock market, hitting protective sell stops and driving the index sharply lower. Conditions have calmed since then and the market has clawed back some of those losses, but traders are bracing for heavy volatility into the close.

At 18:24 GMT, March E-mini NASDAQ-100 Index futures are trading 9602.25, down 131.25 or 1.35%. The high of the session is 9763.00.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but the price action suggests the index may be forming a potentially bearish closing price reversal top. The index is also trading lower for the week.

A trade through 9763.00 will signal a resumption of the uptrend. The main trend will change to down on a trade through 8966.00.

The minor trend is also up. A trade through 9511.25 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 9511.25 to 9763.00. Its 50% level or pivot is 9637.25.

The second minor range is 9330.75 to 9763.00. Its 50% level or pivot is 9547.00.

The market has been straddling these 50% levels all session.

The short-term range is 8966.00 to 9763.00. Its retracement zone at 9364.50 to 9270.50 is the first key downside target zone.

Daily Technical Forecast

Based on the early price action and the current price at 9602.25, the direction of the March E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the pair of 50% levels at 9637.25 and 9546.75.

Bullish Scenario

A sustained move over 9637.25 will indicate the presence of buyers. This will put the index in a position to challenge the record high at 9763.00.

Bearish Scenario

A sustained move under 9546.75 will signal the presence of sellers. If this move created enough downside momentum then look for the selling to extend into the minor bottom at 9511.25, followed by an uptrending Gann angle at 9469.50.

If 9469.50 fails to hold as support then look for the selling to possibly extend into the next uptrending Gann angle at 9382.00, followed closely by the short-term 50% level at 9364.50 and the short-term Fibonacci level at 9270.50.

Side Notes

A close under 9733.50 will form a daily closing price reversal top. A close under 9632.25 on Friday will form a weekly closing price reversal top. These would be potentially bearish chart patterns.