E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Watch for Light Volume Ahead of Fed Meeting

June E-mini NASDAQ-100 Index futures advanced on Monday as investors prepared for a busy earnings week while turning a hopeful eye toward several U.S. states that are relaxing shutdown restrictions put in place to curb the spread of the COVID-19 pandemic. The technology-based index has clawed back nearly 70% of the ground it lost since the coronavirus crisis brought the economy to a grinding halt.

On Monday, June E-mini NASDAQ-100 Index futures settled at 8818.25, up 49.25 or +0.56%.

In stock related news, Apple Inc. slipped 0.2% following a report indicating the company was postponing a production ramp up for its flagship iPhone.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8966.75 will signal a resumption of the uptrend, while a move through 8342.00 will change the main trend to down.

The minor trend is also up. This is helping to generate upside momentum. A trade through 8498.25 will change the minor trend to down.

The minor range is 8966.75 to 8342.00. Its 50% level or pivot at 8654.25 is support.

The main range is 9780.50 to 6628.75. Its retracement zone at 8576.50 to 8204.50 is major support. This zone is controlling the longer-term direction of the index.

Short-Term Outlook

It was a good start to the week with the index picking up where it left off on Friday with a solid rally from the opening on Sunday night. If this upside momentum continues into Tuesday then 8966.75 should be an easy target.

With the Fed starting a two-day meeting on Tuesday, light volume could prevent a breakout over 8966.75. However, if the Fed delivers more positive news on Wednesday then look for a breakout over this level with 9006.75 the next upside target.

On the downside, support is staggered at 8654.25, 8576.50 and 8498.25.