E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Strengthens Over 13880.00, Weakens Under 13786.00

June E-mini NASDAQ-100 Index futures finished higher on Friday after a rise in factory activity in April reinforced bets of a fast-paced economic recovery. Data firm IHS Markit said its flash U.S. manufacturing PMI increased to 60.6 in the first half of this month, the highest reading since the series started in May 2007.

On Friday, June E-mini NASDAQ-100 Index futures settled at 13927.00, up 176.75 or 1.27%.

The index also rebounded from a nearly 1% loss on Thursday following reports of U.S. President Joe Biden’s plans to raise taxes on the wealthiest Americans, including the largest-even increase in levies on investment gains.

With Democrat’s holding a narrow majority control in Congress, a tax bill like this could face challenges and many on Wall Street believe a less dramatic increase is more likely.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 14059.50 will signal a resumption of the uptrend. The main trend will change to down on a trade through 13700.50.

The minor range is 14059.50 to 13700.50. The index closed on the strong side of its pivot at 13880.00.

The second minor range is 13512.50 to 14059.50. Its 50% level at 13786.00 is support.

The short-term range is 12609.75 to 14059.50. If the main trend changes to down then its retracement zone at 13334.50 to 13163.50 will become the primary downside target.

Short-Term Outlook

June E-mini NASDAQ-100 Index futures closed on the strong side of a minor pivot at 13880.00 on Friday. This will give it a slight upside bias early in the session on Monday.

Even if this level fails, there is still support at 13786.00 and 13700.50. However, if 13700.50 fails then look out to the downside with the next likely target zone 13334.50 to 13163.50.

Taking out 14059.50 could trigger another acceleration to the upside since there is not resistance above that level.

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