E-mini NASDAQ Trading Inside Major Retracement Zone

March E-mini NASDAQ-100 Index futures are trading sharply higher after the cash market close on Wednesday. The tech-based index picked up strength throughout the session after Federal Reserve Chair Jerome Powell signaled the central bank would likely raise interest rates less than some investors had feared.

Powell’s comments, in testimony to the U.S. House of Representatives Financial Services Committee, took place while Russia’s week-old invasion of Ukraine continued with the Russia yet to achieve its aim of overthrowing Ukraine’s government.

At 21:49 GMT, March E-mini NASDAQ-100 Index futures are trading 14175.75, up 170.25 or +1.22%. The Invesco QQQ Trust Series 1 ETF (QQQ) settled at $347.23, up $5.74 or +1.68%.

In stock related news, Apple ended 2.1% higher after announcing a product launch for March 8, when it is expected to promote a low-cost version of its popular iPhone with 5G.

The Philadelphia Semiconductor Index jumped 3.4%, lifted by an 8.2% jump in Micron Technology.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since February 24.

A trade through 14668.50 will change the main trend to up. A move through 13025.75 will reaffirm the downtrend.

The minor trend is up. This confirms the shift in momentum. A trade through 13683.00 will change the minor trend to down.

The index is currently trading inside a long-term retracement zone at 14515.75 to 13984.25. Trader reaction to this area should determine the next major move in the market.

The index is also trading inside a short-term retracement zone at 14142.75 to 14406.50, which is one of the reasons the market has been trading sideways for the last four sessions.

Short-Term Outlook

The price action the last four session clearly shows that the next major move by the March E-mini NASDAQ-100 Index will be determined by trader reaction to 13984.25 to 14515.75.

Bullish Scenario

Holding above 13984.25 and 14143.00 will indicate the presence of buyers. Overcoming 14406.50 will indicate the buying is getting stronger. Overtaking 14515.75 should lead to a test of the main top at 14668.50. This is a potential trigger point for an acceleration to the upside with 15068.00 and 15260.00 the next targets.

Bearish Scenario

A sustained move over 13984.25 will signal the presence of sellers. This could trigger a break into the pivot at 13676.75. This is a potential trigger point for an acceleration to the downside with 13025.75 to 12968.00 the next likely target.