US equity index futures are struggling to shake off the growing list of macro concerns. Rising oil prices and higher government bond yields are reinforcing a difficult backdrop for risk assets right now. Technically, the Nasdaq 100 futures remain trapped in a lengthy consolidation phase, suggests Fawaz Razaqzada, technical analyst at TradingCandles.
Unless something fundamentally changes, it is difficult to see how investors will justify increasing their risk exposures. Among the major indices, the Nasdaq 100 is particularly exposed to the shift in market conditions, given the index’s heavy concentration in long-duration technology and growth stocks. The key question is whether its sideways pattern ultimately resolves higher or develops into a deeper correction.
Nasdaq 100 Futures
Support is currently concentrated around 29,000-29,200 on Nasdaq 100 futures. A decisive break below this region would be a clear bearish development. In that case, some follow up technical selling could be the outcome, potentially towards the next support around 28,230.
On the upside, resistance is evident near 29,625. Beyond there, the psychologically important 30,000 level becomes the next major test. It also coincides with the descending trend line that has capped the market during the recent consolidation.
For now, the risks remain skewed towards caution. If Brent crude remains above $100 and Treasury yields continue to climb, the Nasdaq 100 may continue to struggle.
