E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Overcoming 12042.75 Puts 12523.25 on Radar

June E-mini NASDAQ-100 Index futures are trading at their high of the session on Monday as investors continue to buy beaten-down technology issues on the hope that the current two-day rally develops into a major bottom.

Oppenheimer’s chief investment strategist, John Stoltzfus, notes that nasty sell-offs aren’t uncommon in times of Federal Reserve tightening, and that the market appears “way oversold” with big declines hitting even stocks with strong cash flow and profitability.

At 18:35 GMT, June E-mini NASDAQ-100 Index futures are trading 12022.25, up 181.50 or +1.53%. The Ivesco QQQ Trust ETF (QQQ) is trading $293.41, up $4.73 or +1.64%.

In stock related news, Electronic Arts shares rose about 2% following a report that the video game maker is actively seeking a sale or merger.

In economic news, there were no major reports, but sentiment appeared to have gotten a boost after President Joe Biden said he was considering reducing tariffs on some products imported from China. “I am considering it,” Biden said. “We did not impose any of those tariffs. They were imposed by the last administration and they’re under consideration.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 11491.25 will signal a resumption of the downtrend. A move through 12594.00 will change the main trend to up.

The minor range is 12594.00 to 11491.25. The market is currently testing its pivot at 12042.75.

The short-term range is 13555.25 to 11491.25. Its 50% level at 12523.25 is the nearest resistance.

On the downside, the support is a long-term 50% level at 11671.25.

Short-Term Outlook

The direction of the June E-mini NASDAQ-100 Index into the close on Monday and early Tuesday will be determined by trader reaction to the pivot at 12042.75.

Bullish Scenario

A sustained move over 12042.75 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the 50% level at 12523.25, followed by the main top at 12594.00.

Bearish Scenario

A sustained move under 12042.50 will signal the presence of sellers. This could lead to a retest of the long-term 50% level at 11671.25, followed by last week’s low at 11491.25.