E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – 13700.50 Potential Trigger Point for Steep Decline

June E-mini NASDAQ-100 Index futures took a hit on Thursday after Bloomberg News reported Thursday that President Joe Biden is planning a capital gains tax to as high as 43.4% for wealthy Americans.

Biden will propose raising the marginal income tax rate to 39.6% from 37% and nearly double capital gains taxes to 39.6% for people earning more than $1 million, sources told Reuters.

At 20:34 GMT, June E-mini NASDAQ-100 Index futures are trading 13755.50, down 163.75 or -1.18%.

NASDAQ Composite components Microsoft, Apple Inc, Amazon.com Inc and Tesla Inc weighted the most on the downdraft.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 12609.75 will change the main trend to down. A move through 14059.50 will signal a resumption of the uptrend.

The minor trend is also up. A trade through 13700.50 will change the minor trend to down. A move through 13944.75 will signal a resumption of the minor uptrend.

The first minor range is 14059.50 to 13700.50. Its 50% level at 13880.00 is resistance.

The second minor range is 13512.50 to 14059.50. The market is currently trading on the weak side of its pivot at 13786.00.

The main range is 12609.75 to 14059.50. If the minor trend changes to down then look for the selling to possibly extend into its retracement zone at 13334.50 to 13163.50.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13786.00.

Bearish Scenario

A sustained move under 13786.00 will indicate the presence of sellers. This could lead to a retest of the minor bottom at 13700.50. This is a potential trigger point for an acceleration to the downside with the  minor bottom at 13512.50 the next target, followed by 13334.50 to 13163.50.

Bullish Scenario

A sustained move over 13786.00 will signal the presence of buyers. This could trigger a surge into 13880.00, followed by 13944.75. This is a potential trigger point for an acceleration to the upside with 14059.50 the next major target.

For a look at all of today’s economic events, check out our economic calendar.