E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13738.75, Weakens Under 13625.00

June E-mini NASDAQ-100 Index futures are inching lower in the pre-market trade on Thursday with volume and volatility on the low side this week ahead of a slew of U.S. economic reports and the extended Memorial Day holiday weekend.

The focus for technology traders this week has been inflation worries and Treasury yields. Higher yields pressure growth stocks, many of which are technology and tech-related, whose future cash flows are discounted at higher rates.

NASDAQ stocks such as Tesla and Alphabet have struggled in recent weeks as bond yields advanced due to rising inflation worries. However, Amazon ticked 0.19% higher on Wednesday after announcing it is buying MGM.

At 06:23 GMT, June E-mini NASDAQ-100 Index futures are trading 13679.50, down 20.75 or -0.15%.

Looking ahead, on Thursday, U.S. weekly jobless claims are expected to show 425,000 Americans filed for unemployment benefits in the week ended May 22. On Friday, investors will have the opportunity to react to the closely watched U.S. personal consumption (PCE) report, the Fed’s favorite inflation gauge.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 13738.75 will signal a resumption of the uptrend. A move through 12954.25 will change the main trend to down.

The minor trend is also up. A trade through 13356.50 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 14064.00 to 12915.00. Its retracement zone at 13625.00 to 13489.50 is support. Holding above this zone will continue to give the index a strong upside bias.

The main range is 12200.00 to 14064.00. Its retracement zone at 13132.00 to 12912.00 is controlling the near-term direction of the index while offering the best support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to the short-term Fibonacci level at 13625.00.

Bullish Scenario

A sustained move over 13625.00 will indicate the presence of buyers. The first upside target is this week’s high at 13738.75. Taking out this level will indicate the buying is getting stronger with the minor top at 13818.00 the next potential target. Look for an acceleration to the upside if buyers take out this level with strong volume.

Bearish Scenario

A sustained move under 13625.00 will signal the presence of sellers. This could trigger a sharp break into the 50% level at 13489.50. Buyers could come in on the first test of this level, but if it fails then look for the selling to possibly extend into the minor bottom at 13356.50.