Yahoo Finanza NASDAQ Posting Early Rebound after Confirming Correction
March E-mini NASDAQ-100 Index futures are trading higher shortly before Thursday’s cash market opening. Early in the session, the tech-weighted index dipped further into correction territory but rebounded enough to turn higher after China announced across the board rate cuts. Asian equity markets also turned higher on the news with the tech sector leading the charge.
At 11:31 GMT, March E-mini NASDAQ-100 Index futures are at 15168.00, up 134.50 or +0.89%. On Wednesday, the Invesco QQQ Trust Series 1 ETF (QQQ) settled at $366.52, down $4.03 or -1.09%.
On Wednesday, the NASDAQ Composite ended down 10.7% from its November 19 closing record high, as stocks sold off into the market close. A correction is confirmed when an index closes 10% or more below its record closing level.
The NASDAQ’s last correction was in early 2021, when the tech-heavy index fell more than 10% from February 12 to March 8. It was the fourth time in the two years since the coronavirus pandemic shook global markets that the index has found itself in a correction.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through the intraday low at 14993.75 will signal a resumption of the downtrend. A move through 16009.25 will change the main trend to up.
The minor trend is also down. A trade through 15653.25 will change the minor trend to up. This will shift momentum to the upside.
The main range is 14366.75 to 16768.00. The index is currently trading on the weak side of its retracement zone at 15284.00 to 15567.50, making it resistance.
The short-term range is 16659.50 to 14993.75. Its retracement zone at 15826.75 to 16023.25 is additional resistance.
Daily Swing Chart Technical Forecast
The direction of the March E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to 15033.50.
Bullish Scenario
A sustained move over 15033.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of 15284.00.
Watch for sellers on the first test of 15284.00. However, overcoming this level could trigger an acceleration to the upside with 15567.50 the next likely target.
Bearish Scenario
A sustained move under 15033.50 will signal the presence of sellers. Taking out 14993.75 will indicate the selling pressure is getting stronger. This could trigger an acceleration to the downside with 14587.25 and 14366.75 the next major targets.
Side Notes
A close over 15033.50 will form a potentially bullish closing price reversal bottom. This won’t change the main trend to up, but if confirmed, it could trigger the start of a 2 to 3 day correction.
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This article was originally posted on FX Empire
