E-mini NASDAQ-100 May Be Trying to Build Support Base

June E-mini NASDAQ-100 Index futures are inching higher early Wednesday after posting a lower close the previous session in a volatile trade. The market edged lower late in the session on Tuesday, giving back earlier gains as Treasury yields bounced back a little, weighing on technology growth stocks.

Tech-driven stocks rose shortly after the cash market opening, driven by inline economic data and a dip in benchmark Treasury yields from their highest point in nearly three years.

At 04:51 GMT, June E-mini NASDAQ-100 Index futures are trading 14027.25, up 82.25 or +0.59%. On Tuesday, the Invesco QQQ Trust Series 1 ETF (QQQ) settled at $339.53, down $1.36 or -0.40%.

In economic news, the Labor Department’s CPI report showed the prices urban American consumers pay for a basket of goods posted the biggest monthly jump since September 2005, and an annual surge of 8.5%, the hottest year-on-year inflation number in more than four decades.

The report did little to budge the needle of expectations regarding impending interest rate hikes from the Federal Reserve.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 13881.25 will signal a resumption of the downtrend. A move through 15198.00 will change the main trend to up.

The minor trend is also down. A trade through 14642.25 will change the minor trend to up. This will also shift momentum.

The short-term retracement zone is 12942.50 to 15268.75. The index is currently testing its retracement zone at 14105.75 to 13831.00. Trader reaction to this area should determine the near-term direction of the market.

The main range is 16700.00 to 12942.50. Its retracement zone at 14821.25 to 15264.75 is the major resistance.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index early Wednesday is likely to be determined by trader reaction to 14082.75.

Bullish Scenario

A sustained move over 14082.75 will indicate the presence of buyers. The first upside target is the short-term 50% level at 14105.75. Overtaking this level will indicate the buying is getting stronger with a minor pivot at 14261.75 the next target. This is followed by another minor pivot at 14539.75.

Bearish Scenario

A sustained move under 14082.75 will signal the presence of sellers. The first downside target is yesterday’s low at 13831.00, followed by the short-term Fibonacci level at 13831.00. This is a potential trigger point for an acceleration to the downside with 12942.50 the next major target.