E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13044.00, Weakens Under 12984.50

June E-mini NASDAQ-100 Index futures are edging lower early Tuesday after posting a solid gain in the previous session. The technology-driven index climbed about 0.8% to start the week as the benchmark 10-year Treasury yield dipped to 1.688% from a near 14-month high. The index is still down more than 6% from its February 12 record close.

At 04:05 GMT, June E-mini NASDAQ-100 Index futures are trading 13035.50, down 36.25 or -0.28%.

Tesla Inc’s 5.5% jump to $690 provided the biggest boost to the NASDAQ-100 Index. Ark Invest, founded by star stock picker Cathie Wood, has been extremely bullish about the company, in which it is one of the major investors.

The index was also underpinned as the 10-year Treasury yield retreated, after touching 14-month high last week.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, a pair of closing price reversal bottoms is helping to provide some upside momentum.

The main trend will change to up when buyers take out the pair of main tops at 13287.25 and 13316.75. A trade through 12681.75 will negate a closing price reversal bottom.

The minor trend is also down. A trade through 12681.75 will indicate the selling pressure is getting stronger.

A trade through 13157.00 will make 12681.75 a new secondary higher bottom. This will be a bullish sign.

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

The minor range is 13287.25 to 12681.75. Its pivot at 12984.50 is potential support.

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 12681.75 on March 19.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the market will 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 can generate enough upside momentum then look for the rally to possibly extend into 13243.25, followed by 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 first target is 12984.50. If this level fails as support then look for a potential acceleration to the downside with the next target a support zone at 12743.50 to 12615.25. Inside this zone is the minor bottom at 12681.75.

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