E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Testing First Pivot Support at 13313.75

March E-mini NASDAQ-100 Index futures are trading lower at the mid-session on Monday. Sellers are hitting technology-related companies amid climbing Treasury yields and prospects of rising inflation triggered valuation worries.

Shares of Apple Inc, Microsoft Corp, Facebook Inc, Alphabet Inc, Tesla Inc, Netflix Inc and Amazon.com Inc resumed their declines from the previous week, falling between 1% and 2.8% in trading before the bell.

At 17:24 GMT, March E-mini NASDAQ-100 Index futures are trading 13288.75, down 287.25 or -2.12%. The low of the session is 13280.75.

With 10-year Treasury yields jumping 14 basis points last week to 1.34%, near its highest level since February 2020, equity investors grew concerned the move could especially hurt high-growth companies reliant on easy borrowing while diminishing the relative appeal of stocks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 13900.50 will signal a resumption of the uptrend. A move through 12727.25 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 13729.00 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is 12727.25 to 13900.50. Its 50% level at 13313.75 is currently being tested.

The main range is 12491.25 to 13900.50. Its retracement zone at 13195.75 to 13029.50 is the next target area. Since the main trend is up, watch for a technical bounce on the first test of this area.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 index into the close is likely to be determined by trader reaction to 13313.75.

Bearish Scenario

A sustained move under 13313.75 will indicate the presence of sellers. This could trigger a further break into 13195.75 to 13029.50. Buyers could show up on a test of this zone. If 13029.50 fails as support then look for the selling pressure to possibly extend into the main bottom at 12727.25.

Bullish Scenario

A sustained move over 13314.00 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the minor pivot at 13590.75.