E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Main Trend Turned Up on Friday

June E-mini NASDAQ-100 Index futures closed sharply higher on Friday as savvy investors continued to gobble up beaten down stocks. The buying was driven by solid U.S. economic data, which could support growth in the second quarter amid rising fears of a recession.

The data also lowered Federal Reserve rate hike expectations amid signs the central bank might slow or even pause its tightening cycle after is September meeting.

On Friday, June E-mini NASDAQ-100 Index futures settled at 12677.75, up 398.50 or +3.14%. The Invesco QQQ Trust ETF (QQQ) finished at $309.24, up $9.91 or +3.31%.

In economic news, U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed. The economy’s near-term prospects were also brightened by other data from the Commerce Department on Friday showing the goods trade deficit narrowed sharply last month. A record trade deficit caused a contraction in output in the first quarter.

Among the best performing stocks, Autodesk Inc rose 10.31%. Tesla was up 7.33% and eBay Inc gained 5.06%.

Daily Swing Chart Technical Analysis

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

The minor trend is also up. A trade through 11576.25 will change the minor trend to down. This will shift the momentum.

On the downside, support is a 50% level at 12523.25, followed by 12105.75. The major long-term support zone is 11671.25 to 10468.25.

On the upside, resistance is a retracement zone at 12894.75 to 13226.00. This is followed by another retracement zone at 13380.00 to 13825.75.

Short-Term Outlook

Trader reaction to 12523.25 is likely to determine the direction of the June E-mini NASDAQ-100 Index early Monday.

Bullish Scenario

A sustained move over 12523.25 will indicate the presence of buyers. Taking out last week’s high at 12720.25 will indicate the buying is getting stronger. This could trigger a further rally into the 50% level at 12894.75.

Overtaking 12894.75 could trigger an acceleration to the upside with 13226.00 – 13380.00 the next key target zone.

Bearish Scenario

A sustained move under 12523.25 will signal the presence of sellers. This could trigger a steep break into the minor pivot at 12105.75. Since the main trend is up, buyers are likely to come in on a test of this level.