E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Big Test Coming Up at 12743.50 to 12615.25

June E-mini NASDAQ-100 Index futures are down nearly 3% late in the session on Thursday as technology shares plunged in reaction to a spike in bond yields. The risk of rates rising too fast prompted investors to sell growth-focused high flyers.

In the cash market, the NASDAQ Composite dropped 3% at 13,116.17 for its worst day since February 25 as Apple, Amazon and Netflix all fell more than 3%. Tesla slipped nearly 7%, CNBC reported.

At 20:34 GMT, June E-mini NASDAQ-100 Index futures are trading 12797.25, down 391.75 or -2.97%.

The selling spree was sparked when 10-year Treasury yields jumped 11 basis points above 1.75% at its session high, reaching its highest level since January 2020. The 30-year rate also climbed 6 basis points at one point, breaching the 2.5% level for the first time since August 2019.

The jump in bond yields came after the Federal Reserve expressed its willingness to allow an overshoot in inflation. Rising rates can have an outsized impact on growth stocks as they make their future returns less valuable today.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the last two main tops at 13287.25 and 13316.75 will change and reaffirm an uptrend, respectively. A move through 12200.00 will reaffirm the downtrend.

The main range is 13888.00 to 12200.00. Its retracement zone at 13044.00 to 13243.25 is resistance. This zone stopped the buying earlier this week.

The short-term range is 12200.00 to 13287.25. Its retracement zone at 12743.50 to 12615.25 is the next downside target and potential support.

Daily Swing Chart Technical Forecast

Watch the price action and read the order flow on a late session test of 12743.50 to 12615.25. Aggressive counter-trend buyers could come in on a test of this area. This could trigger the start of a quick short-covering rally.

Look for another acceleration to the downside if sellers take out 12615.25 with heavy volume. This could trigger an eventual retest of 12200.00.