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Rangebound E-mini NASDAQ-100 Setting for Volatile Move

By:
James Hyerczyk
Updated: Feb 7, 2022, 19:45 UTC

Trader reaction to 14811.25 - 14917.25 could give us an early insight into whether the bulls or the bears are taking control.  

E-mini NASDAQ-100 Index

In this article:

March E-mini NASDAQ-100 Index futures are inching lower in a quiet trade on Monday as traders continue to digest Friday’s surprisingly strong U.S. Non-Farm Payrolls report and its potential impact on the pace of Federal Reserve interest rate hikes.

The tech-heavy index had a volatile start to February after Facebook owner Meta Platforms lost $200 billion from its market value on disappointing results last week, while Amazon.com Inc gained just as much on plans of hiking its Prime subscription rate.

At 19:02 GMT, March E-mini NASDAQ-100 Index futures are trading 14656.50, down 29.00 or -0.20%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $358.35, up $0.34 or +0.10%.

In stock related news, shares of Netflix, still struggling after the company issued weak guidance in January, fell another 3% on Monday after investment firm Needham said the company’s current strategy could not win the streaming wars.

Meanwhile, Peloton shares surged 20% on reports that Amazon and Nike are lining up as possible suitors for the interactive fitness equipment maker.

Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

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

A trade through 15260.00 will change the main trend to up. A move through 13706.00 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through 13841.00 will change the minor trend to down.

On the downside, the support is a pair of 50% levels at 14515.75 and 14483.00, followed by Fibonacci levels at 14299.50 and 13984.25.

On the upside, resistance is a minor retracement zone at 14811.50 – 14917.25, followed by a short-term retracement zone at 15182.75 – 15531.25.

Short-Term Outlook

The recent price action is being controlled by a pair of retracement zones at 15182.75 to 15531.25 and 14515.75 to 13984.25. Look for a two-sided trade as long as the index remains inside these zones. However, the longer it stays in a range, the bigger the move once it breaks out. So basically, we don’t know if we’re looking at accumulation or distribution at this point.

Inside the two retracement zones is a minor retracement zone at 14811.25 to 14917.25. Trader reaction to this zone could give us an early insight into whether the bulls or the bears are taking control.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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