E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Watching Trader Reaction to 13181.75 into Close

June E-mini NASDAQ-100 Index futures are trading lower late in the session on Monday. Big Tech quickly came under pressure to start the week, with Apple down 1.52% and Facebook off by 0.80%, Netflix down 1.67% and Google-parent Alphabet shedding 0.15%.

Traders have punished the technology sector in recent weeks amid a broader shift out of growth stocks and into cyclical, reopening trades in energy, financials and materials.

At 18:04 GMT, June E-mini NASDAQ-100 Index futures are at 13215.50, down 171.50 or -1.28%.

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 May 13.

A trade through 12915.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through 14064.00.

The minor trend is also down. A trade through 13818.00 will change the minor trend to up.

The main range is 12200.00 to 14064.00. Its retracement zone at 13132.00 to 12912.50 is support. This zone stopped the selling at 12915 on May 13. This zone is also controlling the near-term direction of the index.

The short-term range is 14064.00 to 12915.00. Its retracement zone at 13489.50 to 13625.00 is potential resistance. Since the main trend is down, look for short-sellers to come in on a test of this area. Aggressive counter-trend buyers are going to try to breakout over 13625.00.

The minor range is 12915.00 to 13448.50. Its 50% level at 13181.75 is potential support. Aggressive counter-trend buyers could come in on a test of this level. They are going to try to produce a secondary higher bottom.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to 13181.75.

Bullish Scenario

Holding above 13181.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a late session rally into 13315.75. Overcoming this level could trigger a further rally into 13448.50, followed by 13489.50.

Bearish Scenario

A sustained move under 13181.75 will signal the presence of sellers. This should lead to a quick test of 13132.00. Watch for a technical bounce on a test of this level.

A break under 13132.00 could trigger an acceleration to the downside with the next target as support cluster at 12915.00 to 12912.00.