E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Testing Retracement Zone at 13044.00 – 13243.25

Unlike the other two major U.S. stock indexes, June E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market close on Tuesday although well-off its intraday high. Gains were likely capped ahead of Wednesday’s Federal Reserve interest rate and monetary policy decisions, which are generating some uncertainty for investors.

At 19:30 GMT, June E-mini NASDAQ-100 Index futures are trading 13155.50, up 86.25 or +0.66%.

On Tuesday, the index is being supported by mega cap tech stocks, with Apple and Google-parent Alphabet each adding roughly 1.4% and Amazon adding 0.7%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on March 5.

A trade through 13316.75 will change the main trend to up. Today’s rally stopped short of that level at 13287.25.

The main trend will change to down on a trade through 12200.00. This is highly unlikely, but the index is up seven sessions from that main bottom, which puts it inside the window of time for a closing price reversal top.

The short-term range is 13888.00 to 12200.00. The index is currently trading inside its retracement zone at 13044.00 to 13243.25. This zone is controlling the near-term direction of the index.

The minor range is 12200 to 13287.25. Its retracement zone at 12743.50 to 12615.25 is the primary downside target.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the June E-mini NASDAQ-100 Index into the close on Tuesday will be determined by trader reaction to the short-term Fibonacci level at 13243.25.

Bearish Scenario

A sustained move under 13243.25 will indicate the presence of sellers. This could trigger a pullback into the main 50% level at 13044.00. This price is a potential trigger point for an acceleration to the downside with the minor retracement zone at 12743.50 to 12615.25 the next likely downside target.

Bullish Scenario

A sustained move over 13243.25 will signal the presence of buyers. This could create the upside momentum needed to take out the intraday high at 13287.25, followed by the main top at 13316.75. The latter is a potential trigger point for an acceleration to the upside.

Side Notes

A close under 13069.25 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.