E-mini NASDAQ-100 Reversal Targets 13747.25 – 13984.25

March E-mini NASDAQ-100 Index futures are trading sharply higher at the mid-session after reversing earlier losses. The rally is being fueled by the news that the United States banned Russian oil and other energy imports over the invasion. The move suggests a “sell the rumor, buy the fact” situation is driving the price action.

At 18:12 GMT, March E-mini NASDAQ-100 Index futures are trading 13651.25, up 330.50 or +2.48%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $333.12, up $8.26 or +2.54%.

In stock-related news, Megacaps Amazon.com Inc, Google owner Alphabet Inc, Tesla Inc and Meta Platforms edged higher after plummeting on Monday.

Additionally, the NASDAQ on Monday ended down 20.1% from its November 19 record high close, confirming the tech-heavy index has been in a bear market, according to a widely used definition.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 13025.75 will reaffirm the downtrend. A move through 14391.00 will change the main trend to up.

The minor range is 14391.00 to 13103.25. Its 50% level at 13747.25 is the first upside target.

The main range is 12263.50 to 16768.00. Its retracement zone at 13984.25 to 14515.75 is the resistance zone controlling the near-term direction.

Short-Term Outlook

The index is currently in a position to post a potentially bullish closing price reversal bottom. This may not change the trend, but if confirmed, it could trigger the start of a 2 to 3 day counter-trend rally.

Momentum will also shift to the upside with 13747.25 to 13984.25 the first target area. Since the main trend is down, sellers could come in on the first test of this zone. Overcoming 13984.25 will indicate the short-covering is getting stronger. This could trigger a rally into the main top at 14391.00.

If the intraday surge was just a knee-jerk reaction to the news then look for the selling pressure to resume. Taking out 13103.25 will negate the intraday rally with 13025.75 the next target.

Taking out 13025.75 will reaffirm the downtrend with the May 12, 2021 bottom at 12968.00 the next target. This is a potential trigger point for an acceleration into the March 8, 2021 main bottom at 12263.50.