E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – New Sellers at 13489.50 – 13625.00 Retracement Zone

June E-mini NASDAQ-100 Index futures are trading lower late in the session on Friday after giving up earlier gains. The index rallied early in the session after a report showed a gauge for U.S. manufacturing activity surged to a record high this month. Prices retreated later in the day after the tech sector came under pressure again amid another drop in bitcoin price.

At 18:42 GMT, June E-mini NASDAQ-100 Index futures are trading 13429.00, down 57.50 or -0.43%.

Contributing to the early rally were shares of Nvidia, which jumped 3% after the chip giant announced a 4-for-1 stock split. The shares increased even though the split adds no actual value to the stock.

In economic news, the IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index jumped to an all-time high of 61.5 in May from 60.5 in April. Economists polled by Dow Jones had expected the index to hold steady.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. But there are late session signs that momentum may be shifting to the downside. A trade through the intraday high of 13570.00 will signal a resumption of the uptrend. The main trend will change to down on a move through 12954.25, followed closely by another main bottom at 12915.00.

The short-term range is 14064.00 to 12915.00. Its retracement zone at 13489.50 to 13625.00 is resistance. This zone stopped the rally on Friday at 13570.00.

The minor range is 12915.00 to 13570.00. Its 50% level or pivot at 13242.50 is the next likely downside target.

The main range is 12200 to 14064.00. Its retracement zone at 13132.00 to 12912.50 is the major support. This zone stopped the selling on May 13 and May 19.

Short-Term Outlook

All eyes should be on trader reaction to 13489.50 to 13625.00. Sellers are trying to form a potentially bearish secondary lower top. Buyers are trying to take it out in order to trigger a rally into a new high.

The direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13489.50.

Bearish Scenario

A sustained move under 13489.50 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the pivot at 13242.50, followed by the major retracement zone at 13132.00 to 12912.00.

Bullish Scenario

A sustained move over 13489.50 will signal the presence of buyers. Taking out the intraday high at 13570.00 could trigger a surge into 13625.00. This is a potential trigger point for an acceleration to the upside.