December E-mini NASDAQ-100 Index futures are edging lower on Tuesday as investors reassessed risks associated with the new omicron Covid variant following yesterday’s rebound.
One NASDAQ Composite stock taking a hit in premarket trading is Expedia Group, down 2.3%. Regeneron, another NASDAQ issue is down about 3% in premarket trading, after it said its antibody treatment may have reduced effectiveness against omicron.
Moderna is posting the biggest loss, down 4.2% after its CEO Stephane Bancel told the Financial Times that he expects existing vaccines to be less effective against the new variant.
At 12:40 GMT, December E-mini NASDAQ-100 Index futures are trading 16314.75, down 76.00 or -0.46%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 16767.50 will reaffirm the uptrend. A move through 15988.00 will change the main trend to down.
The minor trend is also up. It changed to up earlier today when buyers inched through Friday’s high at 16436.00.
The minor range is 16767.50 to 15988.00. Its retracement zone at 16377.75 to 16469.75 is resistance. This area stopped the buying earlier in the session.
The short-term range is 15273.75 to 16767.50. Its 50% level at 16020.50 is support. It stopped the selling on Friday. This is followed by another 50% level at 15676.50.
The intermediate support zone is 15567.50 to 15284.00. This is followed by the main support zone at 14841.25 to 14386.75.
Daily Swing Chart Technical Forecast
The direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to 16377.75 and 16469.75.
A sustained move under 16377.75 will indicate the presence of sellers. The first downside target is 16214.50. If this fails to hold then look for the selling to extend into 16020.50 and 15988.00.
Taking out 15988.00 will change the main trend to down, while a move through the main bottom at 15896.50 will reaffirm the change in trend.
The selling starts to open up under 15896.50 with potential targets layered at 15676.50, 15567.50 and 15284.50.
A sustained move over 16469.75 will signal the presence of buyers. This is a potential trigger point for a surge into the main top at 16767.50.
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This article was originally posted on FX Empire