E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Needs to Hold 8576.50 to Sustain Upside Momentum

Signs that the coronavirus pandemic is easing drove the technology-driven June E-mini NASDAQ-100 index higher on Tuesday, even as the first batch of quarterly earnings showed the outbreak is taking its toll on corporate profits.

“The bending of the virus curve simultaneously across this country and around the globe has brought widespread and serious national conversations about restarting the economy,” Leuthold Group’s chief investment strategist Jim Paulsen told CNBC. “For a crisis whose primary tagline for investors was ‘that is completely unknown,’ this is perhaps the first time there is some semblance of clarity as to a timeline for the end of this sad situation.’

On Tuesday, June E-mini NASDAQ-100 Index futures settled at 8692.50, up 365.25 or 4.20%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 8710.00 will reaffirm the uptrend. The next major upside target is the March 3 main top at 9006.75. The main trend will change to down on a trade through the last swing bottom at 7376.00.

From the top down, the main range is 9780.50 to 6628.75. Its retracement zone is 8576.50 to 8204.50.

The intermediate range is 9006.75 to 6628.75. Its retracement zone is 8100.00 to 7819.50.

The short-term range is 6628.75 to 8710.00, creating a retracement zone at 7669.25 to 7423.75.

Short-Term Outlook

The June E-mini NASDAQ-100 Index closed on the strong side of all three major retracement zones on Tuesday. This is helping to give the index a solid upside bias. Furthermore, as long as the main trend is up, these resistance levels will be treated like support.

Based on Tuesday’s close at 8629.50, the direction of the June E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the main Fibonacci level at 8576.50.

Look for the strong upside bias to continue as long as 8576.50 holds as support. The near-term target is the main top at 9006.75.

A downside bias could begin on a sustained move under 8576.50. If this move attracts enough counter-trend sellers then look for the move to possibly extend into a pair of retracement levels at 8204.50 to 8100.00.