James Hyerczyk
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NASDAQ-100 Index

June E-mini NASDAQ-100 Index futures are trading lower on Wednesday but attempting to crawl out of a hole created by heavy selling pressure earlier in the session. Traders are blaming the weakness on spillover selling related to the rout in the cryptocurrency markets as well as losses in rate-sensitive technology stocks on fears that rising inflation could force the U.S. Federal Reserve to pare back its stimulus support sooner than expected.

At 14:37 GMT, June E-mini NASDAQ-100 Index futures are trading 13067.25, down 144.75 or -1.10%.

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Tech and other growth stocks are sensitive to yields as their value rests heavily on earnings years into the future, which are discounted more deeply when expectations of interest rate hikes rise.

Leading the index lower are shares of Tesla, which are off 4.252% and eBay, which is down 3.508%. Trip.com is posting a solid gain for a second session, up 4.01% on expectations of a strong economic recovery.

Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 12915.00 will signal a resumption of the downtrend. A move through 13448.50 will change the main trend to up.

The main range is 12200.00 to 14064.00. The index is currently testing its retracement zone at 13132.00 to 12912.50. This zone is controlling the near-term direction of the index. It stopped the selling last week at 12915.00.

Taking out the lower or Fibonacci level of the retracement zone at 12912.00 could trigger an acceleration to the downside with 12200.00 a potential near-term target.

The minor range is 12915 to 13448.50. Its 50% level at 13181.75 is resistance.

The short-term range is 14064.00 to 12915.00. If the main trend changes to up then look for a test of its retracement zone at 13489.50 to 13625.00.


Daily Swing Chart Technical Analysis

The direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to a pair of 50% levels at 13132.00 and 13181.75.

Bearish Scenario

A sustained move under 13132.00 will indicate the presence of sellers. This could create the downside momentum needed to challenge 12915.00 to 12912.00.

If 12912.00 fails then look for the selling to possibly continue into 12776.50 and 12609.75. The latter is a potential trigger point for an acceleration into 12200.00.

Bullish Scenario

A sustained move over 13181.75 will signal the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the main top at 13448.50, followed by the short-term retracement zone at 13489.50 to 13625.00.

For a look at all of today’s economic events, check out our economic calendar.

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