E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Late Session Surge Puts 12622.25 Pivot on the Radar

June E-mini NASDAQ-100 Index futures are trading higher late in the session on Friday, putting the tech-weighted index in a position to close on a positive note, but still lower for the week. The price action throughout the period was tumultuous with volatility fueled by wild gyrations amid signs of peaking inflation and worries that the Federal Reserve might tighten policy too aggressively.

Rebounding megacap tech and tech-adjacent growth stocks led the market higher. These shares drove the major indices to record highs when interest rates were straddling historical lows and Fed monetary policy accommodative during the pandemic, but they have been crushed for several months.

In stock-related news, shares of Twitter Inc dropped 9.8% following Elon Musk’s tweet that he had put the $44 billion cash buyout deal on hold, as he waits for the social media company to provide data on fake accounts. Meanwhile, Tesla Inc jumped 4.9%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 11689.00 will signal a resumption of the downtrend. A move through 13555.25 will change the main trend to up.

The minor trend is also down. A trade through 12553.25 will change the minor trend to up. This will shift momentum to the upside.

On the downside, the major support is the long-term retracement zone at 11671.25 to 10468.25.

On the upside, the first target and potential resistance is a pivot at 12622.25.

Short-Term Outlook

The direction of the market into the close on Friday is likely to be determined by trader reaction to 12060.50.

Bullish Scenario

A sustained move over 12060.50 will indicate the presence of buyers. If this move creates enough late session momentum then look for a surge into the minor top at 12553.25, followed by the pivot at 12622.25.

Bearish Scenario

A sustained move under 12060.50 will signal the return of sellers. If this generates enough downside momentum then look for the selling to possibly extend into the minor bottom at 11689.00, followed by the long-term 50% level at 11671.25.