Watch These Nasdaq 100 Futures Levels Amid Global Stock Markets Rout

Nasdaq 100 futures (NQ1!) were more than 4% lower on Monday morning amid a global equities selloff after weaker-than-expected U.S. employment data on Friday renewed fears of a recession in the world’s largest economy.

Japan’s Nikkei Index also weighed on investor sentiment early Monday after it plummeted more than 12% to record its largest single day percentage decline since 1987’s Black Monday stock market crash.

Nasdaq 100 futures have slumped around 15% from their record close last month, officially entering correction territory, as investors continue to offload shares in large-cap tech stocks amid macroeconomic uncertainty and recent downbeat guidance from sector giants Amazon (AMZN) and Intel (INTC).

Below, we take a closer look at the Nasdaq 100 futures chart and use technical analysis to point out important price levels to watch out for amid the sell-off.

200-Day Moving Average in Play

Since a bearish engulfing pattern marked their record high on July 11, Nasdaq 100 futures have staged a sharp reversal, with the price currently trading around the closely watched 200-day moving average.

Monitor These Key Price Levels Amid Selloff

Amid the index’s correction, investors should monitor three key price levels where bargain hunters may seek out buying opportunities.

The first sits around 17,150, an area on the chart that will likely encounter support from a horizontal line linking the December 2023 swing high and April swing low, two prominent price points that formed as part of the broader uptrend between January last year and last month’s record high. It’s also worth pointing out that the relative strength index (RSI) has moved into oversold territory below the 30 threshold, increasing the chances of a bounce at this level.

The next lower area to watch lies at 16,100, where the futures could attract buying interest near the July and November 2023 peaks, a location that may flip from providing prior resistance to future support.

Finally, a more significant downturn could see the futures revisit 15,400, where they would likely find support from a trendline connecting multiple peaks and troughs during a rangebound period from June to October last year. Such a move represents a decline of around 13% from current prices.

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As of the date this article was written, the author does not own any of the above securities.