E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 13044.00 to Sustain Intraday Momentum

June E-mini NASDAQ-100 Index futures are trading sharply higher shortly after the cash market opening on Wednesday, helped by a robust private sector jobs report. Investors are also awaiting the details on U.S. President Joe Biden’s massive infrastructure plan, which could be the source of volatility later in the session.

At 14:51 GMT, June E-mini NASDAQ-100 Index futures are trading 13116.50, up 238.25 or +1.85%.

Wednesday also marks the end of March as well as the end of the quarter. Investors are bracing for volatile trading throughout the session as pension funds and other big investors scramble to rebalance their portfolios.

The NASDAQ has been a relative underperformer throughout the month and quarter as technology stocks are especially sensitive to rising rates because they depend on borrowing money cheaply to invest in their future growth. For March, the tech-heavy benchmark is down 1.1%, on pace to break a four-month winning streak. For the quarter, it’s up 1.2%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. The main trend will change to up on a trade through 13172.00. A move through 12609.75 will signal a resumption of the downtrend.

The minor trend turned up on Wednesday when buyers took out 13003.00. This shifted momentum to the upside. A move through 12776.50 will change the minor trend to down.

The main range is 13888.00 to 12200.00. The index is currently testing its retracement zone at 13044.00 to 13243.25. This zone is controlling the near-term direction of the index.

The minor range is 13172.00 to 12609.75. Its 50% level at 12890.75 is support.

The short-term range is 12200.00 to 13287.25. Its retracement zone at 12743.50 to 12615.25 stopped the selling on March 25.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13044.00.

Bullish Scenario

A sustained move over 13044.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 13172.00, followed closely by a Fibonacci level at 13243.25, and a pair of main tops at 13287.25 and 13316.75. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 13044.00 will signal the presence of sellers. The nearest support is the 50% level at 12890.75.