E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Changed to Up; More Gains to Follow

June E-mini NASDAQ-100 Index futures are trading higher late in the session on Friday, putting the tech heavy market in a position to post a strong gain for the week.

Compared to the benchmark S&P 500 and the blue chip Dow Jones Industrials, the technology-driven NASDAQ is an outperformer, posting a gain of more than 3.0%. The catalyst behind today’s rally is strong earnings from software companies and a dip in the 10-year Treasury yield.

At 18:00 GMT, June E-mini NASDAQ-100 Index futures are trading 12693.75, up 414.50 or +3.38%. The Invesco QQQ Trust is at $309.24, up $9.91 or +3.31%. The NASDAQ is currently about 23% from its record close in November 2021.

While shares of Apple Inc, Microsoft Corp and Tesla Inc were providing the strongest lift for the index, a report showing inflation slowing a bit helped give buyers confidence on Friday.

The core personal consumption expenditures price index rose 4.9% in April, down from the 5.2% pace seen the previous month. This particular report is watched closely by the Federal Reserve when setting policy.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier in the session when buyers took out the previous top at 12594.00. A trade through 11491.25 will change the main trend to down.

The market is currently trading on the strong side of a short-term pivot at 12523.25. This is followed by a long-term 50% level at 11671.25.

On the upside, the next potential resistance is a short-term retracement zone at 12894.75 to 13226.00.

Daily Swing Chart Technical Forecast

Trader reaction to 12523.25 is likely to determine the direction of the June E-mini NASDAQ-100 Index into the close on Friday.

Bullish Scenario

A sustained move over 12523.25 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into the 50% level at 12894.75.

Bearish Scenario

A sustained move under 12523.25 will signal the presence of sellers. This could trigger an intraday correction into the close. This will also indicate that traders may try to continue to build a support base before moving higher.