E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 12891.00, Weakens Under 12890.75

June E-mini NASDAQ-100 Index futures are lower in overnight trading Sunday after a late session surge on Friday helped it end the week with a strong performance. The index wiped out a 0.8% loss and ended the session 1.2% higher.

At 04:19 GMT, June E-mini NASDAQ-100 Index futures are trading 12887.75, down 79.00 or -0.61%.

Traders are bracing for heightened volatility during this holiday-shortened week with quarter-end rebalancing among pension funds and other big investors. The recent swift advance in bond yields could set up money managers for big adjustments in their portfolio.

The tech-heavy NASDAQ has lost 0.4% this month as some investors dumped high-flying technology stocks amid rising yields.

Daily Swing Chart Technical Analysis

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

The minor range is 13172.00 to 12609.75. The index is currently straddling its pivot at 12891.

The short-term range is 12200.00 to 13287.25. Its retracement zone at 12743.50 to 12615.25 is support. This zone stopped the selling at 12609.75 on March 25.

The main range is 13888.00 to 12200.00. Its retracement zone at 13044.00 to 13243.25 is resistance. This zone stopped the buying at 13172.00 on March 23.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to 12891.00 – 12890.75.

Bearish Scenario

A sustained move under 12890.75 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 12743.50. If it fails then look for a further break into 12615.25, followed by 12609.75. The latter is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over 12891.00 will signal the presence of buyers. The first upside target is the main 50% level at 13044.00. Sellers could come in on the first test of this level.

Overtaking 13044.00 could trigger an acceleration into 13172.00, followed by 13243.25.