E-mini NASDAQ-100: Trying to Form Bullish Reversal Bottom

June E-mini NASDAQ-100 Index futures are lower at the mid-session on Monday, but attempting to claw back some of its earlier losses. The tech-weighted index extended its sharp selloff from last week as fears over China’s COVID-19 outbreaks spooked investors already worried about faster U.S. interest rate hikes denting economic growth.

At 17:20 GMT, June E-mini NASDAQ-100 Index futures are trading 13384.50, up 31.00 or +0.23%. This is up from an earlier low of 13184.00. The Invesco QQQ Trust ETF (QQQ) is at $326.15, up $0.75 or +0.23%.

In earnings related news, investors were also on edge at the start of a week that will see megacap companies like Google-parent Alphabet Inc, Microsoft Corp, Amazon.com Inc and Apple Inc publish quarterly results.

In M&A news, Twitter Inc rose 3.9% after sources told Reuters it was set to accept Tesla Inc chief Elon Musk’s ‘best and final’ offer of $54.20 per share in cash.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the intraday low at 13184.00 will signal a resumption of the downtrend. A move through 14298.00 will change the main trend to up.

The short-term range is 12942.50 to 15268.75. The market is currently trading on the weak side of its retracement zone at 13831.25 to 14105.75, making it resistance.

Daily Swing Chart Technical Forecast

The direction of the June E-mini NASDAQ-100 Index into the close on Monday will be determined by trader reaction to 13353.50.

Bearish Scenario

A sustained move under 13353.50 will indicate the presence of sellers. Taking out the intraday low at 13184.00 will be a sign of weakness. If this move creates enough downside momentum then look for the selling to possibly extend into the March 15 main bottom at 12942.50.

Bullish Scenario

A sustained move over 13353.50 will signal the presence of buyers. If this move generates enough upside momentum then look for a late session surge into the short-term retracement zone at 13831.25 – 14105.75.

Side Notes

A close over 13353.50 will produce a daily closing price reversal bottom. If confirmed, this could trigger the start of a minimum 2 to 3 day corrective rally.