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E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Turns Short-Term Bullish on Trade Thru 12096.75

·2-min read

June E-mini NASDAQ-100 Index futures are trading higher shortly after the cash market close on Wednesday. The market is up, but off its high following the release of minutes from the Federal Reserve’s latest monetary policy meeting.

The minutes showed policymakers unanimously felt the U.S. economy was very strong as they grappled with reining in inflation without triggering a recession.

At 20:17 GMT, June E-mini NASDAQ-100 Index futures are at 11922.50, up 151.50 or +1.29%. The Invesco QQQ Trust ETF settled at $291.33, up $4.09 or +1.42%.

The minutes from the Fed’s May 3-4 meeting showed officials saw the need to raise rates quickly, and possibly more than the market has priced in, to quell the recent inflationary pressures.

The index edged higher after the minutes because it did not contain any surprises.

Daily June E-mini NASDAQ-100 Index
Daily June E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 11491.25 will signal a resumption of the downtrend. A move through 12594.00 will change the main trend to up.

The minor trend is also down. A trade through 12096.75 will change the minor trend to up. This will also shift momentum to the upside.

On the downside, the major support is a long-term retracement zone at 11671.25 to 10468.25.

On the upside, the first resistance is a minor pivot at 12042.75. This is followed by a second minor pivot at 12042.75.

Short-Term Outlook

Trader reaction to 11671.25 is likely to determine the direction of the June E-mini NASDAQ-100 Index early Thursday.

Bullish Scenario

A sustained move over 11671.25 will indicate the presence of buyers. The first upside target is 12042.75, followed by the minor top at 12096.75.

Taking out 12096.75 could create the upside momentum needed to challenge the 50% level at 12523.25, followed by the main top at 12594.00. A trade through this level will change the main trend to up and signal further upside potential.

Bearish Scenario

A sustained move under 11671.25 will be a sign of weakness. Taking out the minor bottom at 11576.25 should lead to a quick test of the minor bottom at 11491.25. This is a potential trigger point for an acceleration into the November 2, 2020 main bottom at 10913.75.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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