E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weak Under 13489.50, Strong Over 13625.00

June E-mini NASDAQ-100 Index futures are trying to find direction shortly after the cash market opening on Tuesday. The most tech-driven index, however, is outperforming the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average.

Early in the session, the index is being supported by Peloton, which is up 3.71%. JD.Com Inc, which is posting a 2.57% gain. Both Align Technology Inc and Trip.com are up about 2.52%.

The best performing high-flying stock is Amazon, which is up 0.88%. Gains are likely being capped by Microsoft, which is off by 0.035% and Facebook, which is 0.462% lower.

At 13:40 GMT, June E-mini NASDAQ-100 Index futures are trading 13357.25, up 45.25 or +0.34%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been drifting higher since the formation of a 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 trade through the last main top at 14064.00.

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 on May 13 at 12915.00. This zone is also controlling the near-term direction of the index.

The minor range is 12915.00 to 13448.50. Its 50% level at 13181.75 is potential support.

The short-term range is 14064.00 to 12915.00. Its retracement zone at 13489.50 to 13625.00 is potential resistance. Trader reaction to this zone will determine whether a new secondary lower top forms or if there is going to be a breakout to the upside over 13625.00.

Daily Swing Chart Technical Forecast

The direction of the June E-mini S&P 500 Index on Tuesday is likely to be determined by trader reaction to 13489.50.

Bearish Scenario

A sustained move under 13489.50 will indicate the presence of sellers. If this move creates enough downside momentum then look for a possible test of the pair of 50% levels at 13181.75 and 13132.00. Buyers could come in on a test of this levels. They are going to try to form a potentially bullish secondary higher bottom.

If 13132.00 fails as support, we could see an acceleration to the downside with the next target a support cluster at 12915.00 to 12912.00.

Bullish Scenario

A sustained move over 13489.50 will indicate the presence of buyers. This could trigger an acceleration into the short-term Fibonacci level at 13625.00. This is a potential trigger point for an acceleration to the upside with the minor top at 13818.00 the next likely target.

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