E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Trader Reaction to 13044.00 Sets the Tone

June E-mini NASDAQ-100 Index futures are edging higher in overnight trading while trying to claw back some of Friday’s late session sell-off. The mostly technology-based index is chasing the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average, both of which closed at record highs on Friday.

At 02:49 GMT, June E-mini NASDAQ-100 Index futures are trading 12955.75, up 31.50 or +-.24%.

Despite Friday’s lower close, the NASDAQ managed to advance about 3% last week. The trade was mostly two-sided as investors continued to battle volatility from the rising Treasury yields. The U.S. 10-year Treasury hit its highest level in more than a year on Friday. The benchmark Treasury note reached 1.642%, its highest level since February 2020.

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. A move through 12200.00 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The short-term range is 13888.00 to 12200.00. Its retracement zone at 13044.00 to 13243.25 is resistance. This zone stopped the buying at 13110.50 last Thursday.

The minor range is 12200.00 to 13110.50. Its retracement zone at 12655.25 to 12547.75 is the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index on Monday is likely to be determined by trader reaction to the short-term 50% level at 13044.00.

Bearish Scenario

A sustained move under 13044.00 will indicate the presence of sellers. If this move is able to create enough downside momentum then look for the selling to possibly extend into the minor retracement zone at 12655.25 to 12547.75.

Bullish Scenario

A sustained move over 13044.00 will signal the presence of buyers. The first target is last week’s high at 13110.50. Taking out this level could trigger an acceleration to the upside with the next target the Fibonacci level at 13243.25, followed closely by the main top at 13316.75. This is a potential trigger point for an acceleration to the upside.