E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 13625.00 to Sustain Upside Momentum

June E-mini NASDAQ-100 Index futures are testing the high of the session shortly after the cash market closed slightly better on Monday. Volume was well below average as investors searched for a catalyst to drive the price action after Friday’s U.S. Non-Farm Payrolls report and ahead of Thursday’s U.S. consumer inflation reports. Both of which could influence the Fed’s monetary policy decision on June 16.

At 20:37 GMT, June E-mini NASDAQ-100 Index futures are trading 13813.00, up 46.25 or +0.34%.

In other news, prices may have been capped by concerns over corporate taxes. The Group of Seven (G7) advanced economies agreed on Saturday to back a minimum global corporate tax rate of at least 15%, a move Treasury Secretary Janet Yellen called a “significant, unprecedented commitment” to bring what she called a race to the bottom on global taxation.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Monday’s higher-high reaffirmed the uptrend. A trade through 13462.25 will change the main trend to down.

The minor trend is also up. A move through 13818.00 will reaffirm the minor trend.

The short-term range is 14064.00 to 12915.00. The index is currently trading on the strong side of its retracement zone at 13625.00 to 13489.50, making it a support area.

The minor range is 12915.00 to 13773.00. If the main trend changes to down then its retracement zone at 13344.00 to 13242.75 will become the primary downside target.

Short-Term Outlook

We expect to see more of the same trade on Tuesday with volume below average and a slight bias to the upside. Investors appear to be neutral on inflation and don’t seem to be worried about the possibility of Fed tapering since if approved, it won’t begin until about January 2022. Furthermore, the Fed isn’t expected to begin raising rates until January 2024.

Look for the upward tone to continue on a sustained move over 13625.00, and for a downside bias to begin on a sustained move under 13489.50.