E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Bearish Under 13044.00, Bullish Over 13243.25

June E-mini NASDAQ-100 Index futures are trading slightly better during the pre-market session but there has been no follow-through to the upside after Wednesday’s rebound rally. The price action suggests investors are still assessing the Federal Reserve’s monetary policy statement, economic projections and comments from Chair Jerome Powell.

At 07:07 GMT, June E-mini NASDAQ-100 Index futures are trading 13194.00, up 5.00 or +0.04%.

On the bullish side, the Federal Reserve on Wednesday sharply ramped up its expectations for economic growth but indicated that no interest rate hikes are likely through 2023.

However, with an improving outlook, comes higher inflation, which could drive up Treasury yields. Higher rates have been hurting growth-oriented companies particularly hard as they erode the value of future cash flows.

Investors are going to have to start accepting the fact that Treasury yields could continue to rise, or the sell-off we saw earlier in the month could resume.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 13316.75 will change the main trend to up.

The main range is 13888.00 to 12200.00. The index is currently testing its retracement zone at 13044.00 to 13243.25. This zone is also controlling the near-term direction of the index.

The minor range is 12200.00 to 13287.25. Its retracement zone at 12743.50 to 12615.25 is the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index futures contract on Thursday is likely to be determined by trader reaction to 13243.25.

Bearish Scenario

A sustained move under 13243.25 will signal the presence of sellers. This could drive the index into 13044.00. If this level fails then look for the selling to possibly extend into 12934.25. This is a potential trigger point for an acceleration to the downside with 12743.50 to 12615.25 the next target.

Bullish Scenario

A sustained move over 13243.25 will indicate the presence of buyers. Taking out the minor top will indicate the buying is getting stronger. A move through the main top at 13316.75 will change the main trend to up. This could trigger an acceleration to the upside since the next major resistance doesn’t come in until 13888.00.