NASDAQ-100 Futures Rebound after Testing Key Support Zone

March E-mini NASDAQ-100 Index futures are trading lower shortly after the cash market close on Thursday as investors’ renewed optimism on big tech names soured after Facebook-parent Meta Platforms reported disappointing quarterly results and issued weaker-than-expected revenue guidance.

At 21:05 GMT, March E-mini NASDAQ-100 Index futures are trading 14695.50, down 419.00 or -2.77%. On Thursday, the Invesco QQQ Trust Series 1 ETF (QQQ) settled at $353.52, down $14.97 or -4.06%.

Meta Platforms shares plunged more than 25% after the company’s quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter. It was the biggest drop ever for the Facebook parent.

BREAKING NEWS:  The tech-driven index is rebounding slightly after Amazon reported a 9% sales increase in the fourth quarter after the cash market close, and a big profit gain on its Rivian stake.

Amazon also increased the price of Prime nearly 17% to $139 per year.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

A trade through 13706.00 will signal a resumption of the downtrend. A move through 16009.25 will change the main trend to up.

The minor trend is up. This is controlling the momentum. A trade through 13841.00 will change the minor trend to down. A new minor top was formed at 15260.00.

The main range is 16659.50 to 13706.00. Its retracement zone at 15182.75 to 15531.25 is resistance. This area stopped the buying at 15260.00 on Wednesday.

The main support is 14515.75 to 13984.25. Inside this zone is a minor support area at 14483.00 to 14299.50.

Short-Term Outlook

Since the main trend is down, sellers came in at 15182.75 to 15531.25. This helped form the minor top at 15260.00. They are trying to form a potentially bearish secondary lower top.

The next major target is 14515.75 to 13984.25. This is followed by 14483.00 to 14299.50. The combination of these two zones creates a support cluster at 14515.75 to 14483.00.

On Thursday, the index tested 14456.25. This was inside the main retracement zone. Aggressive counter-trend buyers came in to drive the market to nearly unchanged for the session. They are trying to form a potentially bullish secondary higher bottom.

Essentially, the index is being controlled by retracement zones at 14515.75 to 13984.25 and 15182.75 to 15531.25.

Look for a choppy trade as long as the index remains between these two levels.