The direction of the June E-mini NASDAQ-100 Index into the close will be determined by trader reaction to 13975.75.
June E-mini NASDAQ-100 Index futures are getting pounded late in the session, putting the technology-based index in a position to post a potentially bearish closing price reversal top. The plunge in tech stocks is offsetting the first batch of corporate earnings from banks that largely exceeded expectations.
Tesla, a NASDAQ component, fell more than 3%. Big Tech stocks including Amazon, Facebook, Netflix and Apple all traded at least 1% lower.
At 19:50 GMT, June E-mini NASDAQ-100 Index futures are trading 13801.25, down 174.50 or -1.25%.
The main trend is up according to the daily swing chart. However, late in the session, the index is trading lower which could be a sign that momentum is getting ready to shift to the downside.
A trade through 14029 will signal a resumption of the uptrend. A trade through 12609.75 will change the main trend to down.
The minor trend is also up. A move through 13512.50 will change the minor trend to down. This will also shift momentum to the downside.
The minor range is 13512.50 to 14029.00. Its 50% level at 13770.75 is currently being tested.
The short-term range is 12609.75 to 14029.00. Its retracement zone at 13319.25 to 13152.00 is the primary downside target and support area.
The direction of the June E-mini NASDAQ-100 Index into the close will be determined by trader reaction to 13975.75.
A sustained move over 13975.75 will indicate the presence of buyers. If this creates enough upside momentum then look for the late rally to possibly extend into 14029.00.
A sustained move under 13975.75 will signal the presence of sellers. The first target is the minor pivot at 13770.75. This price is a potential trigger point for an acceleration to the downside with the first target coming in at 13512.50.
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James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.