E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Change in Minor Trend Puts 12523.25 on Radar

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market close on Thursday, putting the tech-heavy index on track to break a long string of weekly declines.

The futures contract is currently riding a seven-week losing streak. The cash market NASDAQ Composite advanced nearly 2.7% to 11,740.65, helped by a surge in Dollar Tree shares.

At 20:23 GMT, June E-mini NASDAQ-100 Index futures are trading 12254.75, up 312.50 or +2.62%. The Invesco QQQ Trust ETF (QQQ) closed at $299.28, up $8.02 or +2.75%.

In stock related news, discount retailer Dollar Tree jumped 21.9% after posting an earnings beat and helped push the NASDAQ higher.

Additionally, shares of Twitter jumped 6.3% on news that the social media company is suing billionaire Elon Musk for delayed disclosure of this stake in the company. In other news, Elon Musk increased his commitment in this takeover bid in the company to $33.5 billion, which analysts have said indicates a new seriousness and increased probability that he’ll complete the deal.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 12594.00 will change the main trend to up. A move through 11491.25 will signal a resumption of the downtrend.

The minor trend is up. It changed to up on Thursday when buyers took out the minor top at 12096.75. This shifted momentum to the upside. A trade through 11576.25 will change the minor trend to down.

The minor range is 12594.00 to 11491.25. The index is trading on the strong side of its pivot at 12042.50, making it support.

The major support is the long-term 50% level at 11671.25. This is followed by the long-term Fibonacci level at 10468.25.

On the upside, the nearest resistance is a 50% level at 12523.25, followed by a retracement zone at 12894.75 to 13226.00.

Daily Swing Chart Technical Forecast

Trader reaction to 12042.50 will determine the direction of the June E-mini NASDAQ-100 Index early Friday.

Bullish Scenario

A sustained move over 12042.50 will indicate the presence of buyers. This could trigger an early surge into the 50% level at 12523.25, followed by the main top at 12594.00.

A trade through 12594.00 will change the main trend to up with the 12894.75 to 13226.00 retracement zone the next target area.

Bearish Scenario

A sustained move under 12042.50 will indicate weakness, suggesting the market still needs time to build a proper support base. If this move generates enough downside momentum then look for the selling to possibly extend into 11671.25 – 11491.25.