E-mini NASD-100 Threatening to Turn Lower for the Week

June E-mini NASDAQ-100 Index futures are trading lower shortly after the mid-session on Friday. The catalysts behind the weakness are the prospect of higher interest rates, a troublesome bond market recession indictor and another drop in chip stocks.

At 17:18 GMT, June E-mini NASDAQ-100 Index futures are trading 14736.50, down 132.25 or -0.89%. The Invesco QQQ Trust Series 1 ETF (QQQ) is at $359.00, down $3.54 or -0.98%.

Investors are digesting the official jobs report for March, which showed the U.S. economy adding 431,000 jobs. The result was below the composite estimate of 490,000 from Dow Jones but above some of the lower end estimates. Nonetheless, the data signaled resilience in the U.S. economy, supporting an aggressive tightening policy by the Federal Reserve.

Stock traders largely shook off a recession signal from the bond market that was triggered after the closing bell Thursday and again on Friday morning. The 2-year and 10-year Treasury yields inverted for the first time since 2019.

However, U.S. Treasury yields jumped and a closely watched part of the yield curve reinverted after the jobs data supported the view that the Fed will need to aggressively hike rates to stem soaring inflation.

Meanwhile on the stock front, Chip stocks fell again on Friday, with Intel dropping more than 4% and Advanced Micro Devices losing 2.3%, amid growing concern about personal computer demand.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 15268.75 will signal a resumption of the uptrend. A move through 12942.50 will change the main trend to down. This is highly unlikely, but there is room for a normal 50% to 61.8% correction of the recent 10-session rally.

The minor trend is also up. A trade through 14433.50 will change the minor trend to down. This will shift the momentum.

The main range is 16700.00 to 12942.50. Earlier in the week, the index found resistance at the top of its retracement zone at 15264.50. Today, it is trading on the weak side of the 50% level at 14821.25.

The short-term range is 12942.50 to 15268.75. Its retracement zone at 14105.40 to 13831.00 is the new downside target.

Daily Swing Chart Technical Forecast

A sustained move under 14821.25 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the minor bottom at 14433.50.

Overcoming 14821.25 late in the session will put the index in a position to turn higher for the session.