E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trend Turns Down; 16075.75 – 15938.00 Next Target

March E-mini NASDAQ-100 Index futures are trading lower on Tuesday after giving back earlier gains. Another surge in U.S. Treasury yields suggests investors are worried about an earlier than expected rate hike by the Federal Reserve.

Investors are betting the Fed will have to make a rate hike as soon as March to combat an expected jump in inflation and a tighter labor market.

U.S. economic data may also be influencing prices with the ISM Manufacturing PMI coming in lower than expected and the JOLTS Job Openings report also failing to reach its estimate.

At 15:38 GMT, March E-mini NASDAQ-100 Index futures are trading 16313.00, down 172.50 or -1.05%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $397.40, down 4.28% or -1.07%.

Heavyweight technology stocks are also weakening after a strong performance earlier in the session. Amazon.com is down 1.32%. Adobe is off by 3.14%. Shares of NVIDIA Corp are down 3.66%.

Helping to hold up the index are shares of Alphabet and Apple, which are up 0.11% and 0.04%, respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier in the session when sellers took out 16292.00. The new main top is 16564.00.

The first potential support area is a retracement zone at 16280.50 to 16130.00.

The second potential support zone comes in at 16075.75 to 15938.00. The latter is a potential trigger point for an acceleration to the downside.

Daily Swing Chart Technical Forecast

The direction of the March E-mini NASDAQ-100 Index into the close on Tuesday will likely be determined by trader reaction to 16280.50.

Bearish Scenario

A sustained move under 16280.50 will indicate the presence of sellers. This could trigger an acceleration to the downside with 16130.00 the next likely target.

If 16130.00 fails then look for the selling to possibly extend into 16075.75 to 15938.00. Look for new buyers on the first test of this area since it represents value.

Bullish Scenario

A sustained move over 16280.50 will signal that buyers are coming in to defend the support zone. This could trigger an intraday rebound into 16475.75. Overtaking this level will indicate the buying is getting stronger with potential targets 16564.00, 16567.50 and 16659.50.