E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Stronger Over 12900.00, Weaker Under 12767.75

March E-mini NASDAQ-100 Index futures are trading lower late in the session on Wednesday after giving up earlier gains. The index is now in a position to post a minor reversal top which suggests technology investors are still not happy with higher interest rates despite a slight retreat in Treasury yields during the trading session.

At 20:57 GMT, March E-mini NASDAQ-100 Index futures are at 12756.75, down 32.00 or -0.25%.

Earlier in the session, the index rallied to a one-week high after the release of a tepid U.S. consumer inflation report and an adequate 10-year Treasury note auction drove Treasury yields lower.

The index turned higher for the year earlier in the session, but prices collapse later when 12885.50 failed to hold as support.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on March 5.

The main trend will change to up on a trade through 13328.25. A move through 12207.25 will negate the closing price reversal bottom and signal a resumption of the downtrend.

On the upside, retracement level resistance comes in at 12900.00, 13054.00 and 13253.75.

On the downside, support comes in at 12767.75, 12600.25 and 12418.25.

Last year’s close at 12885.50 seems to be acting like a pivot on Wednesday.

Short-Term Outlook

With the main trend down, we expected to see some trouble at 12767.75 to 12900.00. This is because sellers are trying to form another secondary lower top.

The same thing can occur if the index tests the next resistance zone at 13054.00 to 13253.75.

On the downside, we’d like to see 12600.25 hold as support. This would mean aggressive counter-trend buyers have come in. They will be trying to form a potentially bullish secondary higher bottom.