E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Value Buyers Could Be Eyeing 15567.25 – 15284.00

March E-mini NASDAQ-100 Index futures fell on Friday as Big Tech stocks succumbed to investor worries over Omicron and the impact of the Federal Reserve’s decision to end its pandemic-era stimulus faster. Investors also partially blamed the massive retreat on year-end tax selling and “triple-witching.

On Friday, March E-mini NASDAQ-100 Index futures settled at 15788.00, down 78.75 or -0.50%. Invesco QQQ Trust Series 1 ETF (QQQ) closed at $384.94, down $1.90 or -0.49%.

During the session, Oracle tumbled 6.4% after the Wall Street Journal reported the enterprise software maker is in talks to buy electronic medical records company Cerner in a deal that could be valued at $30 billion. Shares of Cerner surged 12.9%.

In other news, Nvidia dropped 2.1% and Alphabet lost 1.9%. Additionally, many mega cap tech shares registered steep losses this week. Microsoft dipped 0.3% Friday, bringing its weekly decline to nearly 5.5%. Apple fell more than 4% this week.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Friday when sellers took out the last swing bottom at 15734.00. Taking out the next main bottom at 15547.25 will reaffirm the downtrend. A trade through 16457.00 will change the main trend to up.

The minor range is 15547.25 to 16457.00. On Friday, the index closed on the weak side of its retracement zone at 15895.00 to 16002.25, making it new resistance.

The short-term range is 16768.00 to 15547.25. Its retracement zone at 16157.75 to 16301.75 is new resistance.

The main range is 14366.75 to 16768.00. Its retracement zone at 15567.25 to 15284.00 is the next likely downside target. This zone stopped the selling at 15547.25 on December 3.

Short-Term Outlook

Trader reaction to the minor range at 15895.00 to 16002.25 will determine the early direction of the index.

Overtaking 16002.25 will indicate the counter-trend buying is getting stronger. This could lead to a test of another retracement zone at 16157.75 to 16301.75.

On the downside, the key area to watch is 15567.25 to 15284.00. This zone is controlling the near-term direction of the market so don’t be surprised if counter-trend buyers come in to stop the price slide.

If the main Fibonacci level at 15284.00 fails then look out to the downside. We could see an acceleration into the October 12 main bottom at 14587.25.