E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Investors Facing Challenge at 16130.00 – 16280.50

March E-mini NASDAQ-100 Index futures are testing the high of the session late Wednesday, driven by upbeat consumer confidence and other economic data. Meanwhile, investors remain optimistic over new developments about the severity of the Omicron coronavirus variant that is sweeping the world.

Technology stocks are up for a second straight session as volatility has ratcheted up in the last month of 2021 following the arrival of Omicron and an otherwise strong year for equities.

At 20:37 GMT, March E-mini NASDAQ-100 Index futures are trading 16117.00, up 137.00 or +0.86%. The Invesco QQQ Trust Series 1 ETF (QQQ) settled at $393.96, up $4.75 or +1.22%.

In economic news, U.S. consumer confidence improved further in December, suggesting the economy would continue to expand in 2022. The survey from the Conference Board showed more consumers planned to buy a house and big-ticket items such as motor vehicles and major household appliances as well as go on vacation over the next six months.

In stock-related news, Tesla Inc shares rose 7.06%, boosting the S&P 500 and NASDAQ. Tesla Chief Executive Elon Musk said in an interview he has sold “enough stock” following several weeks of share sales by the billionaire.

Meanwhile, Paychex Inc and Xilinx Inc posted gains of 4.8% and 4.05%, respectively. Drug-maker Moderna Inc is down 6.11% and stay-at-home-stocks Zoom Video Communications and Peloton Interactive lost 3.1% and 4.21%, respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 16457.00 will change the main trend to up. A move through 15492.00 will signal a resumption of the downtrend.

The main range is 14587.25 to 16768.00. Its retracement zone at 15567.25 to 15274.00 is major support. This area stopped the selling on Monday at 15492.00.

The minor range is 16457.00 to 15492.00. Late in the session, the market is trading on the strong side of its retracement zone at 16088.25 to 15974.50, making it support.

The short-term range is 16768.00 to 15492.00. Its retracement zone at 16130.00 to 16280.50 is currently being tested.

Short-Term Outlook

The direction of the March E-mini NASDAQ-100 Index early Thursday is likely to be determined by trader reaction to the 50% level at 16130.00.

If the rally extends then 16280.50 will be the first target and potential trigger point for an acceleration to the upside with 16457.00 the next target.

If the rally fails inside 16130.00 – 16280.50, then look for a possible pullback into 16088.25 to 15974.50. The latter is a potential trigger point for an acceleration to the downside.